Question : 13) Which of the following likely to happen if the : 1377398

13) Which of the following is likely to happen if the government imposes a price control at $60, when the demand curve shifts to D2?

A) There will be a shortage of 15 units of the good in the market.

B) There will be a surplus of 15 units of the good in the market.

C) There will be a shortage of 10 units of the good in the market.

D) There will be a surplus of 10 units of the good in the market.

14) Which of the following statements is true?

A) Price controls strengthen the functioning of the invisible hand.

B) Price controls weaken the functioning of the invisible hand.

C) Price controls always benefit buyers and make sellers worse off.

D) Price controls always benefit sellers and make buyers worse off.

15) Which of the following statements differentiates between a shortage and a surplus?

A) A shortage occurs when price is held at the equilibrium price, but a surplus occurs when price is held above the equilibrium price.

B) A shortage occurs when price is held below the equilibrium price, but a surplus occurs when price is held at the equilibrium price.

C) A shortage occurs when quantity supplied exceeds quantity demanded, whereas a surplus occurs when quantity demanded exceeds quantity supplied.

D) A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.

The following figure illustrates the demand and supply curves for a good.

16) Refer to the figure above. What is the equilibrium price and quantity of the good?

A) Equilibrium price = $40, equilibrium quantity = 20 units

B) Equilibrium price = $60, equilibrium quantity = 10 units

C) Equilibrium price = $60, equilibrium quantity = 20 units

D) Equilibrium price = $80, equilibrium quantity = 30 units

17) Refer to the figure above. Which of the following is likely to happen if a price control below the equilibrium price is imposed?

A) Quantity supplied will exceed quantity demanded.

B) Quantity demanded will exceed quantity supplied.

C) Consumer surplus will decrease.

D) Producer surplus will increase.

18) Refer to the figure above. Which of the following is likely to happen if a price control of $40 is imposed?

A) There will be a surplus of 10 units in the market.

B) There will be a shortage of 10 units in the market.

C) There will be a surplus of 20 units in the market.

D) There will be a shortage of 20 units in the market.

19) Refer to the figure above. Which of the following is likely to happen if a price control above the equilibrium price is imposed?

A) Quantity demanded will exceed quantity supplied.

B) Quantity supplied will exceed quantity demanded.

C) Consumer surplus will increase.

D) Producer surplus will decrease.

20) Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market?

A) There will be a surplus of 25 units in the market.

B) There will be a shortage of 25 units in the market.

C) There will be a surplus of 10 units in the market.

D) There will be a shortage of 10 units in the market.

21) The decrease in social surplus from a market distortion is referred to as:

A) deadweight loss.

B) market loss.

C) revenue loss.

D) Pareto loss.