1. A price ceiling is a:A. legally established minimum price that can be charged for a good.B. legally established maxim...
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1. A price ceiling is a:
A. legally established minimum price that can be charged for a good.
B. legally established maximum price that can be charged for a good.
C. minimum price that is in fact charged in a competitive market.
D. maximum price that is in fact charged in a competitive market.
E. maximum price that the good has ever sold for.
2. A price floor is a:
A. legally established minimum price that can be charged for a good.
B. legally established maximum price that can be charged for a good.
C. minimum price that is in fact charged in a competitive market.
D. maximum price that is in fact charged in a competitive market.
E. maximum price that the good has ever sold for.
3. A price ceiling creates _____ when it is set _____ the equilibrium price.
A. excess demand -- below
B. excess demand -- above
C. excess supply -- below
D. excess supply -- above
4. A price floor creates _____ when it is set ______ the equilibrium price.
A. excess demand -- below
B. excess demand -- above
C. excess supply -- below
D. excess supply -- above
5. A price ceiling usually results in ______ consumer surplus, ______ producer surplus, and
A. higher - lower - some deadweight loss
B. higher - lower - higher tax revenues
C. lower - higher - some deadweight loss
D. lower - higher - higher tax revenues
E. lower - lower - some deadweight loss
6. A price floor usually results in ______ consumer surplus, ______ producer surplus, and _______
A. higher - lower - some deadweight loss
B. higher - lower - higher tax revenues
C. lower - higher - some deadweight loss
D. lower - higher - higher tax revenues
E. lower - lower - some deadweight loss
7. The wholesale market equilibrium price is 6 cents a pound for raw sugar, and the market quantity sold is 30 million pounds. Which of the following policies would create an excess supply of sugar?
A. A price ceiling of 10 cents a pound
B. A price floor of 10 cents a pound
C. A price ceiling of 3 cents a pound
D. A price flor of 3 cents a pound.
8. The wholesale market equilibrium price is 6 cents a pound for raw sugar, and the market quantity sold is 30 million pounds. Which of the following policies would create an excess demand for sugar?
A. A price ceiling of 10 cents a pound
B. A price floor of 10 cents a pound
C. A price ceiling of 3 cents a pound
D. A price flor of 3 cents a pound.
9. If there is excess demand for a product because of price controls, we can be sure that the price control being used is a:
A. price floor
B. price ceiling
C. excise tax on producers
D. sales tax on consumers
True or False Price ceiling is a minimum price that sellers may charge for a good, usually set by government.
True or False Price floor is a maximum price below which exchange is not permitted.