The price ceiling
A. is binding.
B. causes a shortage.
C. causes the quantity demanded to exceed the quantity supplied.
D. All of the above are correct.
D. All of the above are correct.
Economics
You might also like to view...
If the economy has been producing at a point where real GDP is less than potential GDP, what fiscal policy can the federal government use to restore real GDP to potential GDP?
A) decrease the quantity of money B) raise the interest rate C) increase taxes D) cut government expenditure on goods and services E) cut taxes
Economics
Suppose TC = 10 + (0.1 ? q2). If p = 10, the firm's profit-maximizing level of output is
A) 40. B) 50. C) 60. D) 0, since the firm will shut down.
Economics