In a market where the government imposes a price control, the excess demand or excess supply created will be determined by
a. the imposed price and the slope of the demand curve
b. the imposed price and the slope of the supply curve
c. only the imposed price determines these things
d. the difference between the imposed price and the equilibrium price
e. the difference between quantity demanded and quantity supplied at the imposed price
E
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In 2013, the budget deficit in the United States was approximately
A) $9.7 billion B) $9 billion. C) $973 billion. D) $17 trillion. E) $97 billion.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower