Multiple Choice
A price ceiling is a policy that:
A) will lead to a shortage if the policy is effective.
B) sets a minimum price in a market.
C) is effective only if the ceiling price is above the equilibrium price.
D) transfers surplus without creating any dead weight loss.
Correct Answer:
Verified
Correct Answer:
Verified
Q38: Do consumers benefit if government sets a
Q39: An effective quota system does not:<br>A)increase quantity
Q40: If the elasticity of demand is low,
Q41: In order to fund health care, the
Q42: Although a price ceiling sets a
Q44: Quotas in agriculture exist to:<br>A)increase the wealth
Q45: Suppose the market demand for cigarettes is:
Q46: The surprising observation that houses in cold
Q47: The current domestic demand for steel is
Q48: The market demand curve shifts when:<br>A)there is