Which of the following is a result of imposing a rent ceiling?
A) There is an increase in the quantity of apartments demanded.
B) The marginal benefit of the last apartment rented is less than the marginal cost of supplying it.
C) Some consumer surplus is converted to producer surplus.
D) There is an increase in the quantity of apartments supplied.
A
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Figure 4.4 illustrates the supply of tacos. An increase in the price of ground beef, which is used to make tacos, would most likely cause a movement from
A) point a to point b. B) point c to point b. C) S2 to S1. D) S0 to S1.
When a tax is imposed on a good or a service, the marginal benefit of the last unit bought ________ the marginal cost of the last unit
A) is equal to B) is greater than C) is less than D) None of the above answers is correct because there is no consistent relationship between the marginal benefit of the last unit and its marginal cost. E) is not able to be compared to