Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 7, Problem 4Q
To determine
The role of prices and whether the government should interfere in the market.
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What will be the result of an decrease in a price ceiling for gasoline?
Group of answer choices
The quantity will decrease because the quantity demanded will decrease.
The quantity will remain the same; only the price will change.
The quantity will increase because the quantity demanded will increase.
The quantity will decrease because the quantity supplied will decrease.
If a city government were to impose a ceiling price on rental prices in the downtown area:
quantity supplied would increase.
supply would increase.
an illegal market would likely emerge.
quantity demanded would decrease.
what sort of shift in supply or demand would result in a market equilibrium with higher prices and sales volume?
Chapter 7 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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