When regulating a firm, setting price equal to marginal cost does not necessarily require providing a subsidy if

Which of the following is correct? When the expected amount supplied exceeds the expected amount demanded, then:

a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. The nation's economy expands.

The rationing mechanisms that develop under binding price ceilings are usually inefficient

a. True b. False Indicate whether the statement is true or false