A price ceiling: a. would be imposed if the government believes the market equilibrium price is too low. b. is the lowest price that the law will allow to be charged in the market. c. is the price that must be charged in the market. d. is the highest price that the law will allow to be charged in the market
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a. would be imposed if the government believes the
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- An increase in an effective price ceiling will do what in the relevant market? a. The surplus will increase.b. The surplus will decrease.c. The shortage will increase.d. The shortage will decrease.If a price ceiling is not binding, then a. the market will be less efficient than it would be without the price ceiling. b. there will be a surplus in the market. c. there will be a shortage in the market. d. there will be no effect on the market price or quantity sold.An effective price ceiling: A. Increases the quantity supplied. B. Is set above the equilibrium price. C. Results in a surplus. D. Is set below the equilibrium price.
- The government of Brazil wishes to regulate the grocery bags by preventing the current prices from rising, what actions should it take? * a. Set a price ceiling above the equilibrium price b. Impose a direct tax on landlords c. Grant a subsidy to landlords d. Set a price ceiling below the equilibrium priceA binding price ceiling: A. will cause quantity supplied to exceed quantity demanded. B. will set a legal minimum price in a market. C. will increase total well-being. D. will cause quantity demanded to exceed quantity supplied.Price $4 $2 $1 0 A B C Market for Good X What is the condition in the market for good X with an effective price ceiling at $2? D Supply X Demand 50 100 150 200 250 Quantity There is a surplus of 50 units. There is a surplus of 100 units. There is a shortage of 50 units. There is a shortage of 100 units.
- If a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.In the market for Widgets, the equilibrium price is $ 20 and the equilibrium quantity is 5000 Widgets, which of the following statements is FALSE? A. None of the above B. If the government sets a price ceiling at $ 15 companies will increase the quantity supplied C. If the government sets the price floor for widgets at $ 25 there will be a surplus of widgets in the market D. If the price ceiling is set at $ 15 there will be a shortage of Widgets in the marketIn a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the same
- a. Producer surplus is the difference between the market price and the minimum price a seller is willing to accept. the market price and the minimum price a buyer is willing to pay. the maximum price a buyer is willing to pay and the market price. the maximum price a seller is willing to accept and the market price. IncorrectWhich of the following explains why is there is a deadweight loss associated with market that is not at equilibrium? A. When a price ceiling is in effect, producers refuse to sell goods at the lower price B. When a price floor is in effect, consumers refuse to sell the good at the lower price. C. When a price ceiling is in effect, consumers refuse to buy the good at the higher price. D. When a price ceiling is in effect, producers refuse to sell the good at the higher price. E. When a price floor is in effect, producers refuse to sell the good at the higher price. F. When a price floor is in effect, producers refuse to sell the good at the lower price.Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d a. The granting of a subsidy to producers of the product b. The removal of a price floor on the product maintained by government legislation and rationing c. The granting of a subsidy to consumers of the product d. The removal of a price ceiling on the product maintained by government legislation and purchases of surpluses
