Ceteris paribus, explain why it is that when a lower ceiling price is imposed below equilibrium price, a greater deadweight loss results
When a lower price ceiling is imposed below equilibrium price, there is a greater disincentive for sellers to produce output. The quantity of output supplied to the market is reduced, and a greater deadweight loss results. Despite the fact that these units of output are valued by consumers in excess of their production cost, sellers have no private incentive to produce them.
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An example of "investment" in the national income accounts is the purchase of
A) a new van by a potter, who packs it with his wares and travels to art shows. B) 100 shares of Intel stock on the New York Stock Exchange. C) a 100-year-old house that was just put on the protected historic sites list in the year in question. D) a U.S. government bond.
Cowboy Hat Markets Cody's Cowboy Hat Emporium has two stores Fort Worth, TX. One in the Stockyards area that caters to tourists and another a mile further north that caters to ranch hands. Why doesn't Cody sell to both customer types out of one store?