Multiple Choice
When the government establishes a price ceiling below the equilibrium price:
A) there will be a temporary shortage that market forces will eventually clear.
B) a shortage will occur that market forces will not be able to clear.
C) producers will eliminate the resulting shortage by jointly deciding to increase supply.
D) the market equilibrium price will prevail.
Correct Answer:

Verified
Correct Answer:
Verified
Q87: An increase in the demand for a
Q88: The law of demand states that people:<br>A)prefer
Q89: If the price elasticity of demand for
Q90: As the price of shirts rises,the law
Q91: If the average price of an automobile
Q92: Which of the following is a valid
Q93: The market supply curve depicts:<br>A)the negative relationship
Q94: Which of the following is true of
Q95: Which of the following statements is true
Q96: If the value of price elasticity of