Author Question: A price ceiling below the market clearing price results in I. excess quantity demand II. excess ... (Read 185 times)

future617RT · **on:** Jun 29, 2018

A price ceiling below the market clearing price results in I. excess quantity demand II. excess quantity supplied III. entry of new producers

A) I only
B) II only
C) III only
D) Both I and III

Question 2

Here's what we know about last year's weekly demand for 2-night DVD rentals in the Village of Harmony: When P = 3, Qd = 100; at P = 5, Qd = 75; and when P = 7, Qd = 50. This year the village population has increased by 25.

What impact is this most likely to have? A) Each individual's demand for DVD rentals will increase.
B) Each individual's demand curve for DVD rentals will shift to the left.
C) The market demand curve for DVD rentals shifts left.
D) The market demand for DVD rentals increases.