This topic contains a solution. Click here to go to the answer

Author Question: If the equilibrium price of bread is 2 and the government imposes a 1.50 price ceiling on the price ... (Read 81 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
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
Answer to Question 1

b

Answer to Question 2

e





 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Everyone has one nostril that is larger than the other.

For a complete list of videos, visit our video library