NAME PRINT LAST NAME, FIRST NAME SECTION# PRICE CEILINGS AND PRICE FLOORS Policymakers are more likely to impose a price ceiling- above equilibrium price in order to protect buyers from high prices. above equilibrium price in order to protect sellers from low prices. below equilibrium price in order to protect buyers from high prices 1. b. C. below equilibrium price in order to protect sellers from low prices. Policymakers are more likely to impose a price floor: above equilibrium price in order to protect buyers from high prices. above equilibrium price in order to protect sellers from low prices. below equilibrium price in order to protect buyers from high prices. below equilibrium price in order to protect sellers from low prices. 2. a. C. 3. A binding price ceiling causes a market while a binding price floor causes a market shortage; shortage surplus; surplus b. shortage; surplus surplus; shortage C. Use the graph below to answer questions 4 and 5. Supply Price ($) $10.00 $7.50 0000 150 073 Demand 150 180 200 225 250 Quantity 0. If there is a price floor set at $10.00, the quantity bought and sold in this market will be equal to and there will be a market c. 150; shortage 225; shortage 150; surplus 225; surplus d. 3. If there is a price ceiling set at $5.00, the quantity bought and sold in this market will be equal to and there will be a market 180; surplus 250; surplus d. c. 180; shortage 250; shortage a. b. Chapter 7 Assignments 141 SECTION# NAME PRINT LAST NAME, FIRST NAME NAME PE Use the graph below to answer questions 6 through 10. Price (S) Use the gr - Supply 15 10 7.5 Demand Quantity 0 10 20 30 40 50 60 70 When this market is in equilibrium, consumer surplus is equal to surplus is equal to $200; $100 $100; $200 and producer 6. $400; $200 $200; $400 C. a. d. b. 1. If there is a price floor set at $15, the quantity bought and sold (exchanged) in this meala will be equal to: 7. 20. a. 60. C. b. 40. d. 80. If there is a price floor set at $15, consumer surplus will be equal to surplus will be equal to $50; $100 $50; $175 and producer a. $100; $100 $100; $175 C. b. d. If there is a price ceiling set at $7.50, the quantity bought and sold (exchanged) in this market will be equal to: 9. 20. a. b. 60. C. 40. d. 80. 3. 10. If there is a price ceiling set at $7.50, consumer surplus will be equal to producer surplus will be equal to $175; $25 b. $175; $50 and a. $200; $25 $200; $50 c. d. Chapter 7 Assignments 142 2. 20 8.

9

How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded?  Is the change positive or negative?  Or does the event cause a change in supply or a change in the quantity supplied?  Is the change positive or negative?  Explain the mechanism for the change and what happens to equilibrium price and quantity. a) The vaccine is approved for children under the age of 12. b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone. c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use. d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad. e) School districts and health care facilities add a requirement for getting the vaccine for all employees.

do fast.