Suppose a market is in equilibrium, and then a price ceiling is imposed at the equilibrium price. Which of the following will happen?
a. Quantity demanded will decrease.
b. An excess supply will develop at the price ceiling level.
c. An excess demand will develop at the old equilibrium price level.
d. There will be no change in price or quantity bought and sold.
e. The market will no longer be in equilibrium.
D
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Which of the following statements is true?
A) The average product of labor is at its maximum when the average product of labor equals the marginal product of labor. B) The average product of labor is at its minimum when the average product of labor equals the marginal product of labor. C) The average product of labor tells us how much output changes as the quantity of workers hired changes. D) Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.
Free trade refers to trade between countries
A) that is without shipping costs. B) that is licensed by both governments. C) that is without restrictions. D) of products which are free to low-income consumers.