Suppose the market-clearing price of milk is $3.00 per gallon, but consumer groups persuade the government to set and enforce a maximum price cap at $2.00 per gallon. The newly legislated price tends to
A) create a surplus of milk.
B) increase the demand for milk.
C) reduce the supply of milk.
D) do all of the above.
E) do none of the above.
E
Economics
You might also like to view...
Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent B) 0.2 percent C) 5 percent D) 1 percent E) none of the above
Economics
According to the benefit principle, the Social Security payroll tax is _____. According the ability-to-pay principle, the Social Security payroll tax is _____
a. equitable; equitable b. equitable; inequitable c. inequitable; equitable d. inequitable; inequitable
Economics