Log in
Economics
5
answers
0
watching
410
views
12 Sep 2018

16) If the free-market equilibrium price for some product is $25, then a legal price ceiling set at $15 will bring about A) the same general effects as a price ceiling of $25. B) the same general effects as an equilibrium price of $15. C) no change in the market outcomes. D) a surplus of the good. E) a shortage of the good.

word_media_image1.png
Watch
5
answers
0
watching
410
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Patrina Schowalter
Patrina SchowalterLv2
13 Sep 2018
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

If a price ceiling is set above the equilibrium price, then

A. there will be neither a shortage nor a surplus of the good.

B. there will be a surplus of the good.

C. there will be a shortage of goods.

D. the price ceiling affects suppliers but not demanders.

E. the price ceiling will generate revenue for the government.

Do all buyers benefit from a binding price ceiling?

a. Yes, A binding price ceiling benefits all buyers because it allows them to obtain the good in the legal market.

b. No, A binding price ceiling benefits only some buyers because not all are able to obtain the good in the legal market.

c. No, A binding price ceiling benefits no buyers because sellers are unwilling to sell any of their products.

d. No, A binding price ceiling benefits only some buyers because, although the price is initially lower, it eventually increases to the equilibrium price.

e. No, A binding price ceiling benefits no buyers because they are unwilling to buy any of the products at a price higher than the equilibrium.

16) Suppose the government establishes a ceiling on the price of rental accommodation that is lower than the free-market equilibrium price. In this case, A) construction of new rental units will be encouraged. B) the rental housing market will be unaffected. C) those people who obtain rental units at the ceiling price will benefit. D) a surplus of current rental units will develop. E) the current stock of rental housing will be better maintained as there is a shortage of housing.

Related Documents

ECO101H1 Lecture Notes - Lecture 6: Price Ceiling, Price Floor, Economic Equilibrium
ECO 1104 Lecture Notes - Lecture 6: Demand Curve, Economic Equilibrium, Price Floor
orangeturtle698
ECO 1104
Final Exam
Study Guide
ECO 1104 : Chapter 6.docx
grayalligator398

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in