Refer to the above figure. A price control has been set which has led to a shortage. This means that a
A) price ceiling has been set at P1.
B) price floor has been set at P1.
C) price ceiling has been set at P2.
D) price floor has been set at P2.
C
Economics
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If real GDP grows at 3 percent a year, the quantity of money grows at 5 percent a year, and the velocity of circulation is constant, then the price level must be
A) increasing at 8 percent a year. B) decreasing at 2 percent a year. C) increasing at 15 percent a year. D) increasing at 2 percent a year. E) decreasing at 8 percent a year.
Economics
The term "currency drain" refers to an increase in currency held outside banks
Indicate whether the statement is true or false
Economics