A price floor is Select one: a) All of the options are correct b) can create inequalities in the market c) Can result when sellers of a good are sucessful in their attempts to convince the Government that the market outcome without a price floor is unfair to them d) None of the options are correct e) a legal minimum on the price at which goods can be sold

A price floor is Select one: a) All of the options are correct b) can create inequalities in the market c) Can result when sellers of a good are sucessful in their attempts to convince the Government that the market outcome without a price floor is unfair to them d) None of the options are correct e) a legal minimum on the price at which goods can be sold

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 3SQ

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Similar questions

When the actual price in a market is above the equilibrium price we would expect: a. a shortage of the good or service. b. this higher price to be the new equilibrium. c. a surplus of the good or service. d. an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. (Figure: The Market for Yachts) Look at the figure The Market for Yachts. If the government imposes a $60,000 tax on yachts (collected from the producers), the price of yachts will rise to _____ and the government will collect _____.
A price ceiling is a government policy that makes it illegal to charge a price Question 17 options: above some specified level. below some specified level. for a good or service. below the equilibrium price. above the equilibrium price.
A $1 tax per unit levied on consumers of good is equivalent to Question 2 options: A price floor that raises the price by $1 per unit A price floor ceiling that raises the good's price by $1 All other answers are incorrect A $1 per unit tax levied on producers of the good
Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow: Group of answer choices A shortage will occur because the price ceiling is below the equilibrium price. A surplus will occur because the price ceiling is below the equilibrium price. The price ceiling will not affect the market which will remain at equilibrium. A surplus will occur because the price ceiling is above the equilibrium price.
If a price floor is set by the government below the market equilibrium price, then Group of answer choices A: the market equilibium price will prevail. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a price ceiling. C: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage.
Which one of the following statements is incorrect?A. If the market price is above the equilibrium price, a market surplus will develop.B. If the market price is below the equilibrium price, there will be an excess demand for the product.C. If the market price is below the equilibrium price, a market shortage will develop.D. If the market price is above the equilibrium price, there will be an excess supply of the product.E. If the market price is above the equilibrium price, the quantity demanded is greater than the quantity supplied.
If a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.
A price floor is a price? A. that creates a surplus of the good if it is set above the equilibrium price. B. above which a seller cannot legally sell. C. below which a seller cannot legally sell. D. Both answers A and C are correct.
Equilibrium price or market-clearing price is the price where Select one: O a. Buyer and seller have different choices Ob. Demand and supply curves interact c. Price ceiling is imposed Od. Government fixes the prices