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- What is price legislation? Explain the condition under which price legislation is employed in an economy.Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, theThe market for N-95 masks is perfectly competitive. Market Demand is given by Q=398-2P and Market Supply is given by Q=3P. The government imposes a price floor of $133. What is the quantity traded in the market with this price floor?
- Which of the following is an example of a price ceiling, or a government regulation put in place to prevent a firm from raising the price of goods? minimum wage agricultural prices minimum rates for the Screen Actors Guild rent controlIn a market with a price floor, the price is Group of answer choices A: set higher than the equilibrium price and represents the government mandated minimum price. B: set lower than the equilibrium price and represents the government mandated minimum price. C: actually the equilibrium price because the price ceiling has no effect on the market.Suppose a binding price floor is in place in a particular market. If the market is deregulated and the price floor is removed what will happen?
- An effective price ceiling is one that causes the market to ______________________when it is imposed. * stay at equilibrium move away from equilibrium move closer to equilibrium nothing can be said without additional informationIn this market, the equilibrium hourly wage is ___, and the equilibrium quantity of labor is thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a . For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 8 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. True False