This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the equilibrium price of bread is 2 and the government imposes a 1.50 price ceiling on the price ... (Read 173 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
If the equilibrium price of bread is 2 and the government imposes a 1.50 price ceiling on the price of bread, then:
 a. more bread will be produced.
  b. there will be a shortage of bread.
  c. the demand for bread will decrease.
  d. producers will charge 0.50 for bread.
  e. 0.50 in tax revenue will be paid for each unit of bread.

Question 2

When the government imposes a price ceiling on a good whose price is too high,
 a. surpluses are created.
  b. supply will increase to meet the demand.
  c. rationing is not necessary.
  d. quantity demanded of the good will fall.
  e. chronic excess demand occurs.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

e


cookcarl

  • Hero Member
  • *****
  • Posts: 539
Reply #2 on: Jun 30, 2018
Correct answers!


jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

A comparison of gradualism and punctuated equilibrium. A comparison of gradualism and punctuated equilibrium.
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
BISON: Ceiling of a cave at Altamira BISON: Ceiling of a cave at Altamira
Iraqi Bread Iraqi Bread
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
The Hardy–Weinberg equilibrium for autosomal genes The Hardy–Weinberg equilibrium for autosomal genes
Video: Arthroscopy

For a complete list of videos, visit our video library