Price floors and price ceilings:
A. cause the supply and demand curves to shift until equilibrium is established.
B. both cause shortages.
C. both cause surpluses.
D. interfere with the rationing function of prices.
Answer: D
Economics
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The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a tax on gasoline is imposed as shown in the figure, then the total tax revenue earned by the government equals
A) $24 million. B) $16 million. C) $8 million. D) more than $24 million. E) less than $8 million.
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Why is knowledge considered a type of capital?
What will be an ideal response?
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