The excess demand created when the government imposes a price ceiling
a. shifts the equilibrium price upward to the price ceiling level
b. is the difference between the quantity demanded at the old equilibrium price and quantity supplied at the price set by the price ceiling
c. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the old equilibrium price
d. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the price set by the price ceiling
e. is the difference between the old equilibrium price and the price set by the price ceiling
D
You might also like to view...
If a dollar a year from now will likely have less purchasing power because of inflation, then a dollar today ________ a dollar a year from now
A) is more valuable than B) has the same value as C) is less valuable than D) may be more valuable or less valuable than
For this question, assume that firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment B) a decrease in both the real wage and the natural rate of unemployment C) an increase in the real wage and a reduction in the natural rate of unemployment D) a decrease in the real wage and an increase in the natural rate of unemployment E) none of the above