The stricter the enforcement of a price ceiling, the
A) smaller is the difference between the black market price and the legal market price of the good.
B) larger is the difference between the black market price and the legal market price of the good.
C) greater is the amount of the good available in total, from either the legal market or the black market.
D) Both answers B and C are correct.
B
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The index of leading indicators was developed to provide more reliable information on
a. the expected future direction of the economy. b. the future profitability of the leading companies in various industries. c. where the economy has been in the recent past. d. the extent to which the economy's existing plant and equipment capacity is being used.
Using the supply and demand model, what is the best way to show the effects on the plywood market of households preparing for a hurricane? (Note: people use plywood to board up their homes to protect them from damage from a hurricane.)
A. Supply curve moved right and demand curve shifted to the left. B. Both supply and demand curves shifted to the right. C. Supply curve shifted to the right, demand curve did not shift. D. Demand curve shifted to the right, supply curve did not shift.