Question : 41. What could happen to render the price ceiling set in : 1379037

41. 

What could happen to render the price ceiling set in the graph shown ineffective?

A. Demand could increase, and shift to the right.

B. Demand could decrease, and shift to the left.

C. Supply could decrease, and shift to the left.

D. None of these would cause the price ceiling to be ineffective.

42. 

Which of the following changes to the market in the graph shown could cause the price ceiling to become ineffective?

A. Demand could increase, and shift to the right.

B. Supply could increase, and shift to the left.

C. Supply could increase, and shift to the right.

D. Supply could decrease, and shift to the left.

43. 

A price ceiling of $8 placed on the market in the graph shown:

A. is effective, and causes a shortage.

B. is ineffective, and does not affect the market.

C. is effective, and causes a surplus.

D. is ineffective, and does not prevent the market from reaching equilibrium.

44. 

After a price ceiling of $8 is placed on the market in the graph shown, the total number of units traded:

A. falls by 8 relative to equilibrium.

B. falls by 15 relative to equilibrium.

C. falls by 23 relative to equilibrium.

D. increases by 15 relative to equilibrium.

45. 

If an ineffective price ceiling were to be set in the market in the graph shown, it could be set at:

A. $5.

B. $8.

C. $10.

D. $15.

46. 

After a price ceiling of $8 is placed on the market in the graph shown:

A. some consumers win because they pay a lower price.

B. producers lose because they sell at a lower price.

C. the total traded in the market falls.

D. All of these are true.

47. 

If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers:

A. then the policy was effective since consumers gained in surplus overall.

B. then the policy was ineffective since consumers gained in surplus overall.

C. then the policy was ineffective since consumers lost surplus overall.

D. then the policy was effective since consumers lost surplus overall.

48. 

If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would have us consider:

A. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.

B. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.

C. whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price.

D. whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place.

49. 

If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would conclude:

A. the policy was effective, since surplus gained by consumers through lower prices is greater than the surplus they lost through deadweight loss.

B. the policy was ineffective, since surplus gained by consumers through lower prices is less than the surplus they lost through deadweight loss.

C. the policy was effective, since surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices.

D. the policy was ineffective, since the amount of deadweight loss is greater than the surplus gained by consumers from lower prices.

50. 

If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would conclude:

A. the policy was effective, since area B is smaller than area C.

B. the policy was effective, since area A + C is larger than B + D.

C. the policy was ineffective, since D is larger than E.

D. the policy was ineffective, since A + C + E is larger than B + D.