Question : 61) Refer to Figure 5-2. A price ceiling set at : 1384174

 

61) Refer to Figure 5-2. A price ceiling set at a price of $1.00 per unit will result in

A) a shortage of 10 units.

B) a shortage of 20 units.

C) a surplus of 10 units

D) a surplus of 20 units.

E) no change to the market outcomes.

62) Refer to Figure 5-2. A price ceiling set at a price of $2.50 per unit will result in

A) a shortage of 5 units.

B) a shortage of 10 units.

C) a surplus of 5 units

D) a surplus of 10 units.

E) no change in the market outcomes.

63) Refer to Figure 5-3. P2 represents a price imposed by the government. What is the quantity of this good that would be exchanged in the market?

A) Q0

B) Q1

C) Q2

D) Q3

E) Q4

64) Refer to Figure 5-3. To be effective, a price floor must lie

A) above P1 but below P2.

B) anywhere above P1.

C) below P1 but above P3.

D) anywhere below P1.

E) within the boundaries of P2 and P3.

65) Refer to Figure 5-3. Suppose P3 represents a price imposed by the government. The result would be

A) excess supply of Q3Q4.

B) excess supply of Q3Q0.

C) excess demand of Q0Q2.

D) excess demand of Q1Q2.

E) excess demand of Q3Q4.

66) Refer to Figure 5-3.  If the government imposes a price floor at , the result would be a price and quantity combination of

A) and .

B) and .

C) and

D) and .

E) and .

67) Suppose the demand for eggs is inelastic and that the market-clearing price is $1.50 per dozen. Now suppose the government imposes a minimum price of $2.00 per dozen. Why might the government implement such a policy?

A) to make consumers better off

B) to increase the incomes of egg farmers

C) to increase excess demand in the egg market

D) to reduce excess supply in the egg market

E) to decrease tax revenues from egg farmers

68) Concert promoters often set ticket prices below what they expect the market-clearing price to be. They are effectively imposing a ________ and the result is often ________ at a considerably higher price.

A) price ceiling; ticket scalping

B) price floor; ticket scalping

C) price ceiling; a surplus

D) price floor; a shortage

E) fair price; excess tickets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

69) Refer to Table 5-1. Suppose that as a public-health measure the government wants to reduce the number of chocolate bars that children consume. To achieve this outcome the government could implement which of the following policies?

A) Impose an equilibrium price of $1.80.

B) Impose a price floor of $1.80.

C) Impose a price ceiling of $1.80.

D) Impose an equilibrium price of $1.20.

E) Impose a price ceiling of $2.00.

70) Refer to Table 5-1. Suppose that as a public health measure the government wants to reduce the number of chocolate bars consumed by children.  If the government imposes a price of $1.60 per chocolate bar, how many fewer chocolate bars will be consumed each week, relative to the competitive equilibrium?

A) 200

B) 300

C) 1700

D) 2000

E) 1800