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If the equilibrium price is $10 and the equilibrium quantity 10 units, and a price ceiling of $8 is imposed, we can expect

a. surpluses to occur in markets soon afterwards.

b. shortages to occur in markets soon afterwards.

c. quantity demanded to fall.

d. quantity supplied to fall.

e. both answers b and d.

 

We can expect that government price floors will eventually lead to

a. market disequilibrium.

b. surpluses.

c. higher prices.

d. underground markets.

e. all of the above.

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019
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Related questions

A price below the equilibrium price and quantity between demand and supply will lead to

a. surpluses.

b. shortages.

c. no change in markets.

d. underground markets.

e. both b and d.

f. none of the above.

 

If the supply of petroleum were reduced by petroleum firms due to rising inventories, we can expect

a. prices to rise.

b. quantity demanded to rise

c. quantity supplied to fall.

d. quantity demanded to fall.

e. none of the above.

f. a, c, and d.

g. a and c only.

1.) An excise tax on a good typically reduces the net price received by the seller. (TRUE/FALSE)

2.) The burden of an excise tax on gasoline falls entirely on consumers of gasoline. (TRUE/FALSE)

3.) Rent controls are one of the few examples of a price floor in market economies. (TRUE/FALSE)

4.) Imposing a price ceiling below the equilibrium price of a good often leads to_____.

A) A greater supply of the good

B) A black market for the good

C) A rightward shift of the supply curve for the good.

D) A leftward shift of the demand curve for the good.

E) All of these

5.) Which of the following is true of price floors and ceilings?

A) Lead to the same price and quantity as in competitive market.

B) Lead to technical efficiency

C) Cause the demand curve to shift left

D) Usually result from government intervention

E) Cause the supply curve to shift right.

6.) Price ceilings often lead to black markets. (TRUE/FALSE)

7.) When minimum wage is above the equilibrium wage what occurs?

A) There will be a shortage of labor

B) There will be no effect on the number of people employed

C) There will be an increase in unemployment rate

D) There will be a decrease in unemployment rate

8.) An excise tax on a good typically reduces the price paid by the consumer (TRUE/FALSE)

9.) If a price ceiling is below the equilibrium price is imposed on a market, it will cause the quantity demanded to rise and the quantity supplied to fall. (TRUE/FALSE)

10.) Price floors often lead to black markets. (TRUE/FALSE)

11.) If an excise tax is imposed on restaurant meals what occurs?

A) Fewer meals will be produced and sold

B) More meals will be produced and sold

C) Market price of the meals will fall

D) Government tax revenue will fall.

Who bears the primary costs of a rent control program?

A. landlords
B. renters that get rent-controlled apartments
C. taxpayers
D.

the wealthy

Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). A price of $20 would result in:

A. Excess supply of 60
B. Excess supply of 120
C. Excess supply of 140
D. Excess demand of 140

US agricultural price supports are politically popular because

A. They have no adverse impacts
B. The US would have food shortages without them
C. The benefits accrue to a large number of voters and the costs are paid by a small number of voters
D.

The costs are spread out among millions of people

Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). What would be the equilibrium price?

A. $15.50
B. $12.50
C. $10
D.

$15

Price floors and ceiling prices:

A. cause the supply and demand curves to shift until equilibrium is established.
B. both cause surpluses.
C. interfere with the rationing function of prices.
D.

A change in the price of a good leads to a change in ________, which leads to a ___________

A. quantity supplied; shift of the supply curve
B. supply; shift of the supply curve
C. quantity supplied; movement along the supply curve
D.

When the supply of a product increases, this implies that

A. the price of the product first declined
B. more will be purchased at the same price
C. producers will be willing to accept a lower price for each unit sold
D. demand for the good must have increased
E.

producers will offer less for sale at each possible price

If there is a excess demand for product X:

A. fewer resources will be allocated to the production of this good.
B. the price of the product will rise.
C. the supply curve will shift to the left and the demand curve to the right, eliminating the shortage.
D.

the price of the product will decline.

Which of the following will occur when there is a simultaneous decrease in demand and a decrease in supply?

A. B and D both necessarily occur
B. An increase in equilibrium quantity
C. A and C both necessarily occur
D. An increase in price
E. A and D both necessarily occur
F. A decrease in price
G.

A decrease in equilibrium quantity

Velcro is becoming more and more popular for a variety of uses, including as fasteners for shoes. What should happen to the equilibrium price and quantity for shoelaces as a result?

A. Both price and quantity should decrease.
B. Price should increase and quantity decrease.
C. Both price and quantity should increase.
D. Price should decrease and quantity increase.
E.

Nothing.

If the government imposes a ceiling price on apartment rents, we would expect to observe all of the following except one. Which is the exception?

A. conversion of some apartment complexes to condos
B. a shortage
C. an increase in the number of new apartment complexes being built
D. lower maintenance of existing apartments
E. long waiting lists for apartment seekers

supply; movement along the supply curve

both cause shortages.

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