An effective ceiling price will:

A. induce new firms to enter the industry.
B. result in a product surplus.
C. result in a product shortage.
D. clear the market.

Answer: C

Economics

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A carbon tax which is designed to reduce pollution is an example of a

A) noneffective incentive. B) command-and-control policy. C) market-based policy. D) government administrative rule.

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In a democratic society, the preferences of __________ will often dominate decisions made by direct majority voting

a. elected government representatives b. special interest groups c. rent seekers d. senior citizens e. the median voter

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