The shortage created by a price ceiling will likely be
A) smaller if the good is a necessity.
B) larger if the good is addictive.
C) smaller if the good is a luxury.
D) unaffected by the time that has elapsed since the price ceiling is implemented.
E) None of the above answers is correct.
A
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Which statement concerning monopolistic competition is false?
A. Long-run equilibrium under monopolistic competition and pure competition both entail zero economic profits for firms B. Monopolistic competition is likely to result in a greater variety of product brands than pure competition C. The monopolistic ally competitive demand curve is more elastic than the demand curve facing a monopoly D. Long-run equilibrium in monopolistic competition does not entail any economic inefficiency because of easy entry and exit
Assume an economy is in equilibrium at a real GDP of $5 trillion. If aggregate expenditure (AE) increases by $1 trillion, the economy's equilibrium real GDP is likely to
What will be an ideal response?