Macroeconomics 11th Edition by Stephen Slavin

Exercise 39

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
Statement 1: Price ceilings cause shortages. Statement 2: Interest rates are set by supply and demand, but wage rates are not.
a) Statement 1 is true and statement 2 is false.
b) Statement 2 is true and statement 1 is false.
c) Both statements are true.
d) Both statements are false.