he government imposes a price ceiling below the equilibrium price. Which of the following are the effects of this price ceiling? A. Shortage B. Deadweight loss C. Inefficiently low quality of the good D. Both A and B E. All of the above
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The government imposes a
| A. |
Shortage |
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| B. |
|
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| C. |
Inefficiently low quality of the good |
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| D. |
Both A and B |
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| E. |
All of the above |
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| F. |
None of the above |
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- If the government imposes a price ceiling at $14, and the equilibrium price is at $10 in this market, the result would be a. A shortage b. A surplus c. A new equilibrium price d. Neither a surplus or a shortageIf a price ceiling is set below the equilibrium price in a market, A. raioning will be necessary. B. surpluses of the commodity will develop. C. the quantity demanded will exceed the quantity supplied. D. tje quantity supplied willexceed the quantitiy demanded.When there is an excess quantity supplied of a product at the current price, then: a. the market price must be below equilibrium price. b. the market price will tend to rise. c. the market price must be above equilibrium price. d. the market price will tend to fall. e. both c. and d. will occur.
- If the supply decreases and the demand decreases, a. b. C. d. the equilibrium price and quantity both decreases. the equilibrium price decreases while the equilibrium quantity increases. the equilibrium quantity decreases while the effect on price is ambiguous. the equilibrium price and quantity both increases. A a B b D d1. When a price ceiling is imposed in a market, a. a persistent shortage results b. a persistent surplus results c. sellers of the product are made better off d. no one is made better off e. quantity supplied is greater than the quantity demanded 2. All of the following are problems associated with price ceilings except a. chronic excess demand b. an eventual decline in the number of suppliers c. the need to use ration coupons to purchase the good d. chronic excess supply e. landlords failing to maintain rent-controlled properties adequately 3. When a price floor is imposed, it has an impact on a market if it is set a. below the equilibrium price b. at the equilibrium price c. above the equilibrium price because quantity demanded exceeds quantity supplied d. above the equilibrium price because quantity supplied exceeds quantity demanded e. below the equilibrium price because quantity demanded exceeds quantity supplied 4. One lesson to be drawn from our discussion of price ceilings…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
- When the actual price in a market is above the equilibrium price we would expect: a. a shortage of the good or service. b. this higher price to be the new equilibrium. c. a surplus of the good or service. d. an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.Two things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market? A. The price will increase B. The price will decrease C. The change in price will be ambiguousIf there is a market shortage of 20 units, what is the impact on price? A. The price is below the equilibrium at $50 B. The price is above the equilibrium at $50 C.The price is equal the equilibrium at $50 D. None of the above
- 1. What is a good or service that you think should have a price ceiling (maximum price) 2. What is a good or service that you think should have a price floor (minimum price)Fill in the blanks to make the following statements correct. a. Ceteris paribus, the price of a product and the quantity demanded are related positively b. Ceteris paribus, the price of a product and the quantity supplied are related negatively c. At any price above the equilibrium price, there will be excess supply At any price below the equilibrium price there will be excess demandA successful consumer boycott of oranges would impact the equilibrium price of veal as follows: a. Demand fall resulting in price increase b. Demand falls resulting in price fall c. Supply increases resulting in price fall d. Demand and Supply do not change keep price steady e. None of the above