Question :
11.Whichofthefollowingobservationswouldbeconsistentwiththeimpositionofabindingpriceceilingonamarket?
a.asmallerquantityofthegoodisboughtandsold.
b.asmallerquantityofthegoodisdemanded.
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11.Whichofthefollowingobservationswouldbeconsistentwiththeimpositionofabindingpriceceilingonamarket?
a.asmallerquantityofthegoodisboughtandsold.
b.asmallerquantityofthegoodisdemanded.
c.alargerquantityofthegoodissupplied.
d.thepricerisesabovethepreviousequilibrium.
12.Supposethegovernmenthasimposedapriceceilingonlaptopcomputers.Whichofthefollowingeventscouldtransformthepriceceilingfromonethatisnotbindingintoonethatisbinding?
a.Improvementsinproductiontechnologyreducethecostsofproducinglaptopcomputers.
b.Thenumberoffirmssellinglaptopcomputersdecreases.
c.Consumers’incomedecreases,andlaptopcomputersareanormalgood.
d.Thenumberofconsumersbuyinglaptopcomputersdecreases.
13.Supposethegovernmenthasimposedapriceceilingonslicedsandwichbread.Whichofthefollowingeventscouldtransformthepriceceilingfromonethatisbindingtoonethatisnotbinding?
a.Anincreaseinthepriceofflour,whichisusedtomakebread.
b.Adecreaseinthepriceoflunchmeat.
c.Adeceaseinthepriceofunslicedbread,whichpeopleconsiderasasubstituteforslicedbread.
d.Andecreaseinthepriceofpeanutbutterandjelly.
14.Ifthegovernmentremovesabindingpriceceilingfromamarket,thenthepricepaidbybuyerswill
a.increase,andthequantitysoldinthemarketwillincrease.
b.increase,andthequantitysoldinthemarketwilldecrease.
c.decrease,andthequantitysoldinthemarketwillincrease.
d.decrease,andthequantitysoldinthemarketwilldecrease.
15.Ifthegovernmentremovesabindingpriceceilingfromamarket,thenthepricereceivedbysellerswill
a.decrease,andthequantitysoldinthemarketwilldecrease.
b.decrease,andthequantitysoldinthemarketwillincrease.
c.increase,andthequantitysoldinthemarketwilldecrease.
d.increase,andthequantitysoldinthemarketwillincrease.
16.Whenabindingpriceceilingisimposedonamarket,
a.pricenolongerservesasarationingdevice.
b.thequantitysuppliedatthepriceceilingexceedsthequantitythatwouldhavebeensuppliedwithoutthepriceceiling.
c.allbuyersbenefit.
d.Alloftheabovearecorrect.
17.Whenabindingpriceceilingisimposedonamarkettobenefitbuyers,
a.nobuyersactuallybenefit.
b.somebuyersbenefit,butnobuyersareharmed.
c.somebuyersbenefit,andsomebuyersareharmed.
d.allbuyersbenefit.
18.Whichofthefollowingwouldbetheleastlikelyresultofabindingpriceceilingimposedonthemarketforrentalcars?
a.anaccumulationofdirtintheinteriorofrentalcars
b.poorenginemaintenanceinrentalcars
c.freegasolinegiventopeopleasanincentivetoarentacar
d.slowreplacementofoldrentalcarswithnewerones
19.Whichofthefollowingwouldbethemostlikelyresultofabindingpriceceilingimposedonthemarketforrentalcars?
a.frequentrentalprogramssuchas“Rentninetimesandthetenthrentalisfree!”
b.enhancedmaintenanceprogramstopromotethehighqualityofthecars
c.freegasolinegiventopeopleasanincentivetoarentacar
d.slowreplacementofoldrentalcarswithnewerones
20.A priceceiling isbinding whenit isset
a.abovetheequilibriumprice,causingashortage.
b.abovetheequilibriumprice,causingasurplus.
c.belowtheequilibriumprice,causingashortage.
d.belowtheequilibriumprice,causingasurplus.