12.A current shortage is due to a price ceiling. If the price ceiling is removed,a. price would increase, quantity supplied would increase, and quantity demandedwould decreaseb. price would increase, quantity supplied would decrease, and quantity demandedwould increasec. price would decrease, quantity supplied would increase, and quantity demandedwould decreased. price would decrease, quantity supplied would decrease, and quantity demandedwould increase13.Adverse selection refers toa. the phenomenon that occurs when one party in an exchange takes advantage ofknowing more than another partyb. the tendency for individuals to alter their behaviour once they are insured againstlossc. the tendency for individuals to engage in insurance fraudd. both the tendency for individuals to alter their behaviour once they are insuredagainst loss and the tendency for individuals to engage in insurance fraud 14.When a firm experiences economies of scale in production,a. long-run average total cost declines as output expandsb. long-run average total cost increases as output expandsc. marginal cost increases as output expandsd. the marginal product of an input diminishes with increased utilization15.Which of the following is not true of successful price discriminators?a. They could make greater profits by charging everyone a higher, uniform price.b. Their customers must differ in their willingness to pay.C.Their customers must have difficulty reselling the good to other customers.d. They must have monopoly power.

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12. A current shortage is due to a price ceiling. If the price ceiling is removed, a. price would increase, quantity supplied would increase, and quantity demanded would decrease b. price would increase, quantity supplied would decrease, and quantity demanded would increase C. price would decrease, quantity supplied would increase, and quantity demanded would decrease d. price would decrease, quantity supplied would decrease, and quantity demanded would increase

12. A current shortage is due to a price ceiling. If the price ceiling is removed, a. price would increase, quantity supplied would increase, and quantity demanded would decrease b. price would increase, quantity supplied would decrease, and quantity demanded would increase C. price would decrease, quantity supplied would increase, and quantity demanded would decrease d. price would decrease, quantity supplied would decrease, and quantity demanded would increase

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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