EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 9781337509848
Author: Mankiw
Publisher: VST
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Question
Chapter 6, Problem 4CQQ
To determine
The reason for the increase in the quantity supplied, decrease in quantity demanded, and increase in the consumer price .
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Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d
a. The granting of a subsidy to producers of the product
b. The removal of a price floor on the product maintained by government legislation and rationing
c. The granting of a subsidy to consumers of the product
d. The removal of a price ceiling on the product maintained by government legislation and purchases of surpluses
If a municipality sets a price ceiling below equilibrium for apartments in New York City,
Select one:
a. the price ceiling will create a surplus of apartments
b. the price ceiling will create a shortage of apartments
c. the price ceiling will not affect the market for apartments
d. the market for more broadway plays will increase
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Chapter 6 Solutions
EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
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