Asked by Anonymous

Why does a government place price ceilings, such as rent control, on some "essential" goods?

I choose C am I right?

A. to prevent the development of a black market
B. toencourage an increase in supply of necessary items
C. to limit the impact of equilibrium pricing
D. to help reduce demand for these goods
Answered by margaret
A major characteristic of monopolistic competition is that prices will be
A. higher than in perfect competition.

B. lower than in perfect competition.

C. higher than in a true monopoly.

D. unrelated to the type of competition.
Answered by margaret
Advances in technology have reduced the cost of manufacturing MP3 players. If demand does not change,
A. more MP3 players will be sold at a higher price.

B. fewer MP3 players will be sold at a higher price.

C. more MP3 players will be sold at a lower price.

D. fewer MP3 players will be sold at a lower price.
Answered by margaret
Suppose the market for the magazine is in equilibrium. Some students insist on raising the cover price by $1 and printing the same quantity. What is likely to happen?
A. The demand for the magazine will go up.

B. There will be a shortage of 150 magazines.

C. There will be a surplus of 100 magazines.

D. The surplus will be greater than their sales.
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