When the government sets a maximum price that can be charged for a good or service, it creates
A) a price support.
B) a price floor.
C) a white market.
D) a price ceiling.
Answer: D
Economics
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An example of a modern democratic government commandeering resources is
a. the military draft b. government subsidizing agriculture c. government engaging in transfer payments d. government food stamps e. government tax refunds
Economics
Suppose that a competitive firm's marginal cost of producing output q is given by MC = 5 + 2q. Assume that the market price of the firm's product is $27. What level of output will the firm produce?
What will be an ideal response?
Economics