Suppose the market clearing price is $15 and the price ceiling is $17. The price that prevails in the market will be
A) $17.
B) $15.
C) less than $15.
D) more than $17.
B
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The relationship between advertising and product differentiation is
a. positive; the more differentiated the product, the more a firm is likely to spend on advertising. b. negative; the more differentiated the product, the less a firm is likely to spend on advertising. c. zero; there is no relationship between product differentiation and advertising. d. irrelevant; firms with differentiated products do not need to advertise.
Suppose the U.S. was to experience a series of terrorists' attacks aimed at keeping consumers away from large shopping areas. Supposing further that the primary effect is for consumer confidence to decrease, this would likely
A. decrease aggregate demand. B. increase aggregate demand. C. decrease aggregate supply. D. increase aggregate supply.