Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4
If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity? A) Excess demand equals 80 percent of the market equilibrium quantity
B) Excess demand equals 8 percent of the market equilibrium quantity
C) Excess demand equals 16 percent of the market equilibrium quantity
D) The policy does not affect the market quantity
B
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A point or combination that is on the production possibilities curve is:
A. Attainable and resources are fully employed B. Attainable, but some resources are unemployed C. Unattainable, but some resources are unemployed D. Attainable only if we get additional resources
Which one of the following institutions manages Ireland's monetary policy?
(a) The Federal Reserve Bank in America. (b) The Bank of England. (c) The European Central Bank in Frankfurt. (d) The Bank of Ireland.