The imposition of a binding price ceiling on a market causes
a. quantity demanded to be greater than quantity supplied.
b. quantity demanded to be less than quantity supplied.
c. quantity demanded to be equal to quantity supplied.
d. the price of the good to be greater than its equilibrium price.
a
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An increased federal budget deficit resulting from a recession can actually help stabilize an economy, because corporate profits tend to fall in a recession which, in turn, results in ________ corporate taxes and ________
A) lower; increases in the price level B) lower; fewer spending cuts for businesses C) higher; larger profits for businesses D) higher; more tax revenue for the government
Which of the following explains the shift in the foreign exchange market?
a. U.S. residents demanded more European goods and hence demanded fewer euros.
b. Europeans demanded more U.S. goods and hence demanded more U.S. dollars.
c. U.S. residents demanded fewer European goods and hence demanded more euros.
d. Europeans demanded fewer U.S. goods and hence demanded less U.S. dollars.