Price ceilings often generate

A) market clearing prices.
B) rapid increases in supply to meet the excess demand.
C) equilibriums that utilize rationing by price.
D) black markets.

D

Economics

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In a small town the level of demand is capable of supporting only two gas stations. This market is

A) a natural duopoly. B) perfectly competitive because a homogeneous good is being sold. C) operating as if it was a monopoly. D) an example of monopolistic competition.

Economics

Refer to Figure 12-9. At price P1, the firm would produce

A) Q1 units B) Q3 units. C) Q5 units. D) zero units.

Economics