What happens if a government imposes price controls that require a selling price that is ABOVE the equilibrium price? A.SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium. B.SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium. C.SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium. D.SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium. What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price? A.SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium. B.SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium. C.SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium. D.SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What happens if a government imposes price controls that require a selling price that is ABOVE the equilibrium price?

	A.	SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium.
	B.	SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium.
	C.	SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium.
	D.	SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium.

What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price?

	A.	SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium.
	B.	SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium.
	C.	SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium.
	D.	SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium.

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