Price ceilings keep market price
A. above the equilibrium price and create surpluses.
B. above the equilibrium price and create shortages.
C. below the equilibrium price and create surpluses.
D. below the equilibrium price and create shortages.
D. below the equilibrium price and create shortages.
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Heartel was the only telecom service provider in Country A until the government decided to allow foreign telecom companies to provide their services in the country. Due to the impact of the new policy, the supply curve for telecom services from Heartel will: a. become less elastic
b. become more elastic. c. shift to the right. d. shift to the left.
Which of the following will definitely occur when there is a simultaneous increase in demand and an increase in supply?
A. an increase in equilibrium price B. an increase in equilibrium quantity C. a decrease in equilibrium price D. a decrease in equilibrium quantity