1. If the equilibrium price of gasoline is $3.00/gallon and the government places a price ceiling on Gasoline at $ 4.00/gallon, the result will e a shortage of gasoline. True or False 2. A price ceiling set below the equilibrium price causes a surplus. True or False 3. A price set above the equilibrium price is a binding constraint. True or False 4. The shortage of housing caused by a binding rent control is likely to be more severe in the long run When compared to the short run. True or False

In Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations in the market. Next, assume that the government enacts a price ceiling of $2. What is the loss in consumer surplus? A) $6B) $2C) $12D) There is no consumer welfare loss because prices are lower.E) There is not enough information to calculate.

Seeing the huge demand for pens, the government decides to impose price controls on masks. Consider the following two scenarios for part a and for part b Suppose the government imposes a price ceiling at $1. Is it binding?  Show whether there shortageor surplus in the demand-supply diagram above.    How large is this surplus or shortage?    Please Briefly explain your answers to the above.    Now, Suppose the government imposes a price floor at $2. Is it binding?  Show whether there is a surplus or a shortage in the demand-supply diagram above.  How large is this surplus or shortage?  briefly explain your answers to the above

Assume the following demand and supply curves Qd=95-5P Qs=-40+10P Compute the price and quantity i the government was to impose a price ceiling of P=$6 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d P=9, Qs=50, Qd=50 P=6, Qs=50, Qd=50 P=6, Qs=20, Qd=65 P=5, Qs=10, Qd=70

Question 13 Homework • Answered Refer to the supply and demand diagram below. If an subsidy of $3 per unit is introduced in this market, the price that consumers pay will equal and the price that producers receive net of the subsidy will equal 2$ 12 11 10 9 8 7 6 4 3 D: 2 Q 6 8 10 12 14 16 18 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $2; $5. Your answer b $3; $6. $4; d $5; $8. Answered - Incorrect • 1 attempt left Change your responses to resubmit 1 Resubmit

What does each part of the graph stand for? Assume that a local government imposes a price ceiling of $8, how many units will be excessively supplied/demanded?