Question : 7.1   Price Ceilings 1) A price ceiling A) an illegal price. B) the : 1241584

 

7.1   Price Ceilings

 

1) A price ceiling

A) is an illegal price.

B) is the price that exists in a black market.

C) is the maximum price that can legally be charged.

D) Both answers A and B are correct.

E) Both answers B and C are correct.

 

2) A price ceiling is

A) a maximum legal price.

B) a minimum legal price.

C) an equilibrium price.

D) a market-determined price.

E) the highest price at which the quantity demanded equals the quantity supplied.

 

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

A) there will be a surplus of the good.

B) there will be a shortage of the good.

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

D) the price ceiling will generate revenue for the government.

E) the price ceiling affects suppliers but not demanders.

4) A price ceiling in the market for gasoline that is below the equilibrium price will lead to

A) the quantity demanded of gasoline exceeding the quantity supplied.

B) an increase in the demand for gasoline.

C) a decrease in the supply of gasoline.

D) the quantity supplied of gasoline exceeding the quantity demanded.

E) no change in the market since the price ceiling is below the equilibrium price.

 

5) When a price ceiling below the equilibrium price is imposed on a good, production of the good

A) increases.

B) decreases.

C) does not change.

D) is frozen at the pre-ceiling level.

E) either increases or decreases depending on whether the supply of the good increases or decreases when the price ceiling is imposed.

 

6) A price ceiling in the market for fuel oil that is below the equilibrium price will

A) lead to the quantity supplied of fuel oil exceeding the quantity demanded.

B) lead to the quantity demanded of fuel oil exceeding the quantity supplied.

C) decrease the demand for fuel oil.

D) increase the supply of fuel oil.

E) have no effect in the market for fuel oil.

 

 

7) The demand and supply schedules for pizza are in the table above. A price ceiling of $2 per slice results in

A) a surplus of 20 slices of pizza.

B) a shortage of 20 slices of pizza.

C) a shortage of 40 slices of pizza.

D) a shortage of 60 slices of pizza.

E) neither a shortage nor a surplus.

 

8) The demand and supply schedules for pizza are in the table above. A price ceiling of $4 per slice results in

A) a surplus of 20 slices of pizza.

B) a shortage of 20 slices of pizza.

C) a shortage of 40 slices of pizza.

D) a shortage of 60 slices of pizza.

E) neither a shortage nor a surplus.

 

9) The demand and supply schedules for pizza are in the table above. If the government sets a maximum legal price of $2 per slice of pizza, then

A) there is a shortage of 20 slices of pizza.

B) this maximum price is an example of a price floor.

C) this maximum price is an example of a price ceiling.

D) Both answers A and C are correct.

E) Both answers B and C are correct.

10) The figure above illustrates the bagel market. Which of the following statements is correct?

A) With a price ceiling of $1.00 per bagel, the quantity demanded is equal to the quantity supplied.

B) With a price ceiling of $3.00 per bagel, the quantity demanded is greater than the quantity supplied.

C) With a price ceiling of $1.00 per bagel, there is a shortage of bagels.

D) Answers A and B are correct.

E) Answers B and C are correct.

 

11) The figure above illustrates the bagel market. Which of the following statements is correct?

A) With a price ceiling of $1.00 per bagel, the price of a bagel is $1.

B) With a price ceiling of $3.00 per bagel, the price of a bagel is $2.

C) With no government intervention, the equilibrium price of a bagel is $2.

D)  Only answers A and B are correct.

E) Answers A, B, and C are correct.

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more