If the demand for milk is downward sloping, then an increase in the price of milk will result in a(n):
a. increase in the demand for milk

In the above figure, a rent ceiling of $500 per month would

A) not affect the equilibrium quantity. B) create a shortage. C) raise the rent and cause a surplus. D) reduce the rent and create a surplus.

Which of the following models results in the greatest total profit, assuming a fixed number of firms with identical costs and a given demand curve?

A) Cournot B) Stackelberg C) Monopoly D) Perfect competition