The U.S. government establishes a price floor of $1,000 on personal computers. The market price for netbooks (personal computers that specialize in Internet and other basic computer functions) is about $500. How would this price control affect the netbook market?
A) Consumers would have a harder time finding conventional netbooks since MOST would be too powerful.
B) There would be long lines for netbooks.
C) Producers would leave the market for netbooks.
D) There would be no notable effect.
Correct Answer:
Verified
Q80: A major hurricane damages many oil refineries,
Q81: Use the following to answer questions:
Figure: Water
Q82: When a price ceiling is in effect:
A)
Q83: Use the following to answer questions:
Figure: Water
Q84: A deadweight loss is the total of:
A)
Q86: Deadweight loss occurs when:
A) consumer surplus transforms
Q87: A market with price ceilings fails to
Q88: Do price ceilings misallocate resources?
A) Yes, because
Q89: In the late 1500s, the city of
Q90: Use the following to answer questions:
Figure: Water
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