If the government implements a price ceiling on insulin, this will
A) decrease the quantity of insulin the manufacturers will be willing to supply.
B) encourage manufacturers to produce and sell more insulin to increase their profits.
C) have to be set above the market equilibrium price to be effective.
D) increase the price consumers will pay for insulin.
A
Economics
You might also like to view...
In a given market, how are the equilibrium price and the market-clearing price related?
a. There is no relationship. b. They are the same price. c. The market-clearing price exceeds the equilibrium price. d. The equilibrium price exceeds the market-clearing price.
Economics
If the nominal interest rate is 4 percent and expected inflation is 2.5 percent, then what is the expected real interest rate?
a. 1.6 percent b. 10 percent c. 6.5 percent d. 1.5 percent
Economics