Figure 4-14
depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?
a.
In equilibrium, the quantity demanded is 800 gallons.
b.
At the ceiling price, there is a surplus.
c.
The quantity demanded at the price ceiling will equal the quantity supplied.
d.
The equilibrium price would be $1 per unit without the price ceiling.
e.
The quantity sold will be 500 gallons.
e
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If net foreign investment is positive, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)
A) Net exports are negative. B) Capital outflows are less than capital inflows. C) Domestic investment must be less than national saving. D) None of the above are true when net foreign investment is positive.
Another name for a consol is a ________ because it is a bond with no maturity date. The owner receives fixed coupon payments forever
A) perpetuity B) discount bond C) municipality D) high-yield bond