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Question
If Kangs Knick-Knacks is a perfectly competitive firm and is making zero economic profits,
a. firms will enter the market.
b. firms will exit the market.
c. Kangs Knick-Knacks will stay in the market.
d. the market supply curve will shift to the left.
e. the market supply curve will shift to the right.
Answer
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Related questions
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b. relatively unresponsive to a change in price.
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e. completely responsive to a change in price.
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Price gouging laws will usually result in ________ the product in the distressed market.
a. more supply of
b. more local business start-ups to supply
c. government setting up an agency to regulate supply of
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Q:
The economic entity most likely to engage in price gouging is
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Q:
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b. society faces a trade-off between homelessness and rent control.
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
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b. The binding price ceiling will discourage patients from obtaining the drugs they need.
c. The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
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One strategy someone might use to be elected mayor of a university town is to place a binding price ceiling on rent for student apartments. What will happen if he or she gets elected and is able to pass such a law?
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Q:
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Q:
Why would a politician find it difficult to remove a binding price ceiling?
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Q:
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Q:
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a. Demand for jelly will increase along with the price.
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e. The supply of jelly will decrease and the price will increase.
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Q:
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Q:
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