If a price ceiling were imposed in a fish market whose equilibrium price was substantially above the ceiling, what effect would the price ceiling on fish have on the demand for meat and fowl?
Answer to relevant QuestionsWhy are ration coupons typically coupled with price ceilings? There are 1,000 shareholders of Stack Promotions, Inc. Suppose you are one of them. Explain why you would prefer to buy shares of the business and not the corporation's bonds. What kinds of variable costs would she encounter? What identifies those costs as variable? At relatively low levels of output, the firm's aver age fixed cost dominates its average total cost, but at relatively high levels of output, the firm's aver age variable cost dominates. Why? Complete the table. Can you cite an example of a good whose cost structure approximates the characteristics of this table?
Post your question