If a price ceiling is set above the current market clearing price, then
A) a surplus must immediately occur.
B) a shortage must immediately occur.
C) there will be incentives for black markets to develop.
D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
D
You might also like to view...
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. In Figure 19.3, point E
A. Is a high level of utility but not affordable. B. Is optimal and affordable. C. Gives the consumer a very high level of utility and is affordable. D. Represents a very low level of utility and is not desirable.
Where does the World Bank get its funds?
A. from tariffs collected on goods traded internationally B. from governments of the wealthiest nations and from private financial markets C. from printing its own money D. from seizing dead capital in developing nations and selling it at auction