Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $1.50 per loaf:
a. the equilibrium price of wheat will fall and a shortage of wheat will be created.
b. the quantity of wheat supplied will increase

Which of the following statements is true?

A) Corporations can issue stocks and bonds, while proprietorships cannot. B) Corporations face fewer taxes than do proprietorships. C) Corporations have one owner, while proprietorships have many owners. D) Proprietorships have limited liability while corporations have unlimited liability.

In an industry where transportation costs are high and there are limited scale economies,

A) firms will locate close to the market. B) firms will locate close to their input sources. C) firms might locate in either area. D) firms will locate where policy makers decide.