Question : 61) A price ceiling a government regulation that makes it : 1239148

61) A price ceiling is a government regulation that makes it illegal to charge a price

A) below the equilibrium price.

B) above the equilibrium price.

C) for a good or service.

D) above some specified level.

E) below some specified level.

62) When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists.

A) is less than; a surplus

B) is less than; a shortage

C) is greater than; a surplus

D) is greater than; a shortage

E) equals; an equilibrium

63) The graph shows the market for holiday condos in West Palm Beach. The equilibrium rent is ________ a week.

A) any amount less than $1,550

B) any amount greater than $1,550

C) $1,550

D) $4,000

E) None of the above answers is correct.

64) In a housing market with a rent ceiling set below the equilibrium rent,

A) some people seeking an apartment to rent will not be able to find one.

B) the total cost of renting an apartment will decrease for all those seeking housing.

C) some landlords will not be able to find renters to fill available apartments.

D) search will decrease because renters no longer need to search for less expensive apartments.

E) None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.

65) The graph shows the market for ski chalets in Aspen. The Aspen Tourist Board asks the local government to impose a rent ceiling on ski chalets. If the rent ceiling is set at $1,900 a week, then there is ________.

A) a shortage of 3,000 chalets a week

B) a surplus of 3,000 chalets a week

C) neither a shortage nor surplus of chalets

D) a shortage of 6,000 chalets a week

E) a surplus of 6,000 chalets a week.

66) A rent ceiling on housing creates a problem of allocating the available housing units because

A) the demand for housing decreases and the demand curve shifts leftward.

B) the supply of housing increases and the supply curve shifts rightward.

C) a shortage of apartments occurs.

D) a surplus of apartments occurs.

E) it eliminates search, which is one of the major ways housing units are allocated.

67) Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price. The black market for gasoline is ________ market in which the price ________ ceiling price.

A) a legal; exceeds the

B) an illegal; exceeds the

C) a legal; is less than the

D) an illegal; is less than the

E) an illegal; equals

68) If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?

A) reduced search activity

B) black market activity

C) a building boom

D) a housing surplus

E) None of the above answers is correct because to have an impact, the rent ceiling must be above the equilibrium rent.

69) The graph shows the market for ski chalets in Aspen. If a rent ceiling is set at $1,900 a week, then the maximum amount charged in the black market is ________ a week.

A) $1,900

B) $2,050

C) $2,125

D) $225

E) $150

70) The graph shows the market for holiday condos in West Palm Beach. If a rent ceiling is set at $1,700 a week, the quantity of holiday condos rented ________.

A) is 2,000 a week

B) is 4,000 a week

C) is 5,000 a week

D) is some amount, but more information is needed to determine the amount.

E) depends on the black market