A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied
a. True
b. False
Indicate whether the statement is true or false
True
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Which one of the following factors will most likely cause an increase in aggregate demand?
a. An increase in net exports. b. An increase in the real interest rate. c. A decrease in net exports due to falling incomes abroad. d. A technological development that decreases the cost of producing computer chips.
If the demand for flashlights is highly inelastic, this indicates that
a. higher flashlight prices will increase the demand for flashlights. b. the price elasticity of demand for flashlights is greater than 1. c. the price elasticity of demand for flashlights equals 1. d. the quantity of flashlights purchased by consumers is not very responsive to a change in the price of flashlights.