A binding price ceiling is a mandated maximum price below the market equilibrium price.
A binding price ceiling is a mandated _____.(1 point)
Responses
minimum price below the market equilibrium price
minimum price below the market equilibrium price
maximum price below the market equilibrium price
maximum price below the market equilibrium price
minimum price above the market equilibrium price
minimum price above the market equilibrium price
maximum price above the market equilibrium price
7 answers
Governments often set price floors in an effort to protect _____.(1 point)
Responses
consumers from high market prices
consumers from high market prices
producers from high market prices
producers from high market prices
consumers from low market prices
consumers from low market prices
producers from low market prices
Responses
consumers from high market prices
consumers from high market prices
producers from high market prices
producers from high market prices
consumers from low market prices
consumers from low market prices
producers from low market prices
Governments often set price floors in an effort to protect producers from low market prices.
Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that frequently follow natural disasters. One unfortunate side effect of these price ceilings is that they will likely _____.(1 point)
Responses
lead to a surplus as prices are kept from falling to their equilibrium level
lead to a surplus as prices are kept from falling to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
Responses
lead to a surplus as prices are kept from falling to their equilibrium level
lead to a surplus as prices are kept from falling to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
One unfortunate side effect of these price ceilings is that they will likely lead to a shortage as prices are kept from rising to their equilibrium level.
The table gives the supply and demand schedules in a market for apartments. A government price control is implemented that results in a shortage of 300,000 apartments. Which price control must have been used?
(1 point)
Responses
a price floor of $2,000
a price floor of 2,000 dollars
a price ceiling of $1,000
a price ceiling of 1,000 dollars
a price floor of $1,000
a price floor of 1,000 dollars
a price ceiling of $2,000
(1 point)
Responses
a price floor of $2,000
a price floor of 2,000 dollars
a price ceiling of $1,000
a price ceiling of 1,000 dollars
a price floor of $1,000
a price floor of 1,000 dollars
a price ceiling of $2,000
A government price control that results in a shortage indicates that the control is likely a price ceiling set below the market equilibrium price. Therefore, if there is a shortage of 300,000 apartments, the price control must have been a price ceiling of $1,000.