A firm that is the only seller of a product and is in sole control of a market has a

According to this Application, why did the recent decrease in oil prices have only a modest effect on economic growth?

A) Consumers may have saved the money that resulted from lower gasoline prices. B) There was less incentive to produce energy and invest in new capital and equipment. C) Government spending decreased significantly. D) Both A and B are correct.

Price ceilings are adopted in most cases because

A) the government views the current equilibrium price as too high for consumers. B) the government wants to create surpluses. C) the government favors a non-intervention policy. D) producers need incentives to produce more of the good or service.