Answer:
There would be a surplus of 2,000 bags, and producers would be happy with the law.
Explanation:
Unlike a price floor that prevents the price of movie theater popcorn from falling below the equilibrium price level of $15, a price ceiling of $5 prevents the price of movie theater popcorn from rising above $20. When a price ceiling is set above the equilibrium price, the quantity supplied exceeds the quantity demanded by 2,000 packets of popcorn, and there will be a surplus supply.
Answer:
real GDP will remain the same and price level will increase
Explanation:
Answer:
6.5%
Explanation:
Number of people unemployed = 237,000
Labor force = 5 million - 1.3 million - 50,000
Labor force = 3.65 million
Unemployment rate = Number of people unemployed/Labor force*100
Unemployment rate = 237,000/3.65 million*100
Unemployment rate = 6.4931501%
Unemployment rate = 6.5%
Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.
where Δ means <em>change.</em>
<em />
Therefore, given ΔAD of $50 billion, and MPC of 0.6,
= 
= 
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.
Answer:
test marketing
Explanation:
Test marketing is an experimental test of a product in a real life market. Buyers are studied in live shops or market without them knowing. It is conducted on a small scale to see the effectiveness of a marketing strategy.
When the products do not perform well at the test marketing phase it is assumed it will not also perform well in the real market, so they are termed failed products.
The marketing manager in Ithaca maintains a museum of failed consumer products from the test marketing stage.
