If a price ceiling is not binding, then a. the market will be less efficient than it would be without the price ceiling. b. there will be a surplus in the market. c. there will be a shortage in the market. d. there will be no effect on the market price or quantity sold.

If a price ceiling is not binding, then a. the market will be less efficient than it would be without the price ceiling. b. there will be a surplus in the market. c. there will be a shortage in the market. d. there will be no effect on the market price or quantity sold.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter3: The Market And Price System

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: If the price of tomatoes is $5 per pound but then falls to $4 per pound åfter a change in demand.…

A: Surplus is a situation in which quantity supplied is more than the quantity demanded. Shortage is a…

Q: Using the table below answer the following question Price Quantity demanded Quantity supplied…

A: The equilibrium price in the market for skateboards in $500. At this price the quantity demanded and…

Q: Draw a graph of the mask market in Italy. 1. Begin by showing the market before the pandemic when…

A: When there was no pandemic, the demand and supply curves intersected each other, thus there was…

Q: The graph below shows the market for widgets. The government is considering intervening in this…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The market price for that good is $105 What would be the value of consumer surplus

A: Consumer Surplus is the difference between the maximum willingness to pay and the actual price paid…

Q: $50 Supply $40 $30 $20 Price $10 Ceiling Demand $0 40 80 120 160 200 Quantity In the market shown in…

A: Price ceiling is the maximum price that can be charged. It is binding if it set below the…

Q: Figure: A Market in Equilibrium Price „Supply B D E Demand F Quantity (Figure: A Market in…

A: Market equilibrium is at point I where the demand curve and supply curve intersect each other.…

Q: Here is the market for Woozies: Quantity Demanded = 100 - P Quantity Supplied = P There is a law…

A: The demand for a good represents the desires of the people to consume goods and services at…

Q: Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs) 1500 140 500 120 750…

A: Hi, thank you for the question. We can only answer up to 3 sub-parts at one time. If you want…

Q: If the price in a market is above the equilibrium price, this creates a. a shortage b. a surplus c.…

A: Equilibrium is a condition where the forces of market that is the supply and demand are perfectly…

Q: he government imposes a price ceiling below the equilibrium price. Which of the following are the…

A: When the Government is imposing a price ceiling below the Price equilibrium it means the government…

Q: Suppose instead the price ceiling was set at $6. In that case, the market price is what? If the…

A: The market is a system which would have a large number of buyers and sellers in the market. The…

Q: The below graph shows the market of air tickets per month with no Government intervention What are…

A: Equilibrium is achieved at the output level where quantity demanded equals quantity supplied.

Q: price ceiling

A: A price ceiling is the maximum amount that a seller can charge for a product or service. This…

Q: how is the price of Fertilizer determined? we know that the price of a good is formed from the…

A: Demand and Supply The quantity of a commodity that Buyers are willing to buy at various prices is…

Q: 1. When a price ceiling is imposed in a market, a. a persistent shortage results b. a persistent…

A: ANS A price ceiling is a legal restriction imposed by the govt. of a nation on the price level that…

Q: The government imposes a price floor in the market for peanuts in order to stabilize or raise…

A: The price floor or minimum legal price is the minimum price at which the government allows people to…

Q: market surplus or shortage w

A: Supply(SS) and demand(DD) are the two major components of market. The point of intersection of…

Q: Use the table below to answer the questions: Price Quantity Supplied Quantity Demanded $5 25…

A: You have asked multiple questions. We will answer the first question for you. If you want any…

Q: 3. Effects of restricted supply The following graph depicts the market for fortune telling in the…

A: Due to licensing which require tuition and fees, supply will reduce resulting in shifting of supply…

Q: 1. Draw the producer surplus with the following information: A. Equilibrium Price 100 B. Equilibrium…

A: Equilibrium is achieved at a point where demand is equal to supply. Producer surplus refers to the…

Q: Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? What is…

A: If the market price is $21 per bushel, it is given that at this price, quantity demand is 7,000…

Q: If a price ceiling is ineffective and it decreases: Tip: Remember where should the price ceiling be…

A: Price ceiling refers to the legal maximum price that can be charged for a good. Any other price is…

Q: The government decides that a specific scarce good should be provided for everyone who wants it at…

A: "When government sets the price below the market price it represents a price ceiling."

Q: i) In a free market, when the market price is above the equilibrium price, a surplus exists. Falling…

Q: Calculate the price observed in the market The consumer surplus The producer surplus Deadweight…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: Price per bushel Quantity Demanded (bushels) Quantity Supplied (bushels) US$2 40,000 0 4…

Q: Market for Game Consoles 600 Tools 550 500 CS PS 450 400 S 350 ESeq 300 250 200 150 100 50 10 20 30…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Here is the Gadget market: Quantity Demanded = 100 - P Quantity Supplied = 9P What is consumer…

A: In a market, there are buyers and sellers. The buyers are willing to pay a price for each unit of a…

Q: Problem 5 Refer to problem 4. A new minimum wage of $20 has been enforced. What is the surplus?

A: Surplus: When supply exceeds demand Labour supplied at the new wage $20 is: Qs=1000+20*(20) Qs=1400…

Q: 1. If the price of a good increases while the quantity of the good exchanged on markets decreases,…

A: Demand simply refers to a customer's eagerness to buy goods and services and pay the price. Simply…

Q: PRICE (Dulars per pen 1 . QUANTITY (Mens of pens Supply 5. At a price of $2, quantity supplied is…

A: "Demand curve in economics depicts a positive relationship between the price and quantity demanded…

Q: Use the following supply and demand schedules for skate boards in table 18.1, to answer the…

A: According to the above given table, Equilibrium price : $500 Equilibrium quantity : 50 units

Q: The graph attached shows the demand and supply in a market. (a) The equilibrium quantity is…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in…

A: In the above graph, if the total parking is at the D1 intersecting at S, but if there are substitute…

Q: The government has imposed an effective price control for an agricultural product of $12. The…

A: As given equilibrium price of agricultural product market is $8 & government has imposed an…

Q: Assess and illustrate the impact on the market for hot peppers (100's) if the government decided to…

A: Price ceilings serves in preventing a price from rising above a certain level set. If the price…

Q: If the government imposes a price ceiling of $55 in this market, then total surplus will be what?

A: Price ceiling: It is a price control measure that is often being imposed either by the government or…

Q: Determine the size of the market surplus or shortage that would es a price of $40. There will be a…

A: - Diagram

Q: Use the table below to answer the following questions: Quantity Supplied Price Quantity Demanded…

A: All answer in step 2

Q: The screenshot shows a graph market for movies at equilibrium: A) Calculate Consumer, producer, and…

A: Given

Q: The figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the…

A: A rent ceiling is a price ceiling imposed in a real estate market that defines the maximum rent that…

Q: Explain how a price ceiling leads to excess demand or market shortage. Use a diagram to motivate…

A: Price ceiling The maximum legal pricing for a service or product is known as a price ceiling. A…

Q: 10. Is there a shortage or surplus occurring at $8.50? * $10 $9 $8 $7 $6 $5 $4 D 10 20 30 40 50 60…

A: The demand curve shows the negative relationship between price of the good and its quantity…

Q: 6. If the government institutes a price floor at P-$50 there will be a. Excess Demand 22 units b.…

A: 6) Price floor is a legal minimum on the price at which a good can be sold. It's binding only when…

Q: The graph above shows the market for gasoline after the government imposes a price ceiling of $3.50…

A: A price ceiling set below the equilibrium price is binding price ceiling, it will create shortage of…

Question

If a price ceiling is not binding, then

a. the market will be less efficient than it would be without the price ceiling.

b. there will be a surplus in the market.

c. there will be a shortage in the market.

d. there will be no effect on the market price or quantity sold.

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the same
Fill in the blank, Price floors lead to a (blank) in the market? a. surplus b. shortage c. equilibrium d. Price below
True or false. There is no surplus or shortage when there is an equilibrium in the market.
Question The below graph shows the market of air tickets per month with no Government intervention What are the Price and Quantity of Equilibrium? Calculate total Surplus at equilibrium. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention? Will this create a surplus or shortage? Calculate
Here is the market for Woozies: Quantity Demanded = 100 - P Quantity Supplied = P There is a law that the price can't be less than 70. Find PRODUCER surplus.
price quantity demanded quantity supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a) Explain what would happen on the market if the government places a price ceiling at $700. b) what will be the result of a price ceiling of $400.
E4 In a competitive market, the market demand is Qd = 60 −6P and the market supply is Qs = 4P. A price ceiling of $4 will result in A. A shortage of 18 units. B. A shortage of 20 units. C. A surplus of 30 units. D. A surplus of 12 units. E. Neither a surplus nor a shortage.
Here is the Gadget market: Quantity Demanded = 100 - P Quantity Supplied = 9P What is consumer surplus in this market?
1. When a price ceiling is imposed in a market, a. a persistent shortage results b. a persistent surplus results c. sellers of the product are made better off d. no one is made better off e. quantity supplied is greater than the quantity demanded 2. All of the following are problems associated with price ceilings except a. chronic excess demand b. an eventual decline in the number of suppliers c. the need to use ration coupons to purchase the good d. chronic excess supply e. landlords failing to maintain rent-controlled properties adequately 3. When a price floor is imposed, it has an impact on a market if it is set a. below the equilibrium price b. at the equilibrium price c. above the equilibrium price because quantity demanded exceeds quantity supplied d. above the equilibrium price because quantity supplied exceeds quantity demanded e. below the equilibrium price because quantity demanded exceeds quantity supplied 4. One lesson to be drawn from our discussion of price ceilings…
Which government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d a. The setting of a maximum price b. The setting of a minimum price c. The imposition of a tax d. The granting of subsidy
Plot the below demand and supply schedule. A. What is the market equilibrium? B. Describe the situation at a price of $9. Describe the situation at a price of $3. What will occur? (Show both situations on your graph). If shortage or surplus, how will the price adjust?C. Suppose the government imposed a minimum price of $10. What would occur? Illustrate (show on your graph). Is the situation that results temporary or permanent? Explain D. Indicate what the price would have to be to represent an effective price ceiling (show on your graph). Is the shortage that results temporary or permanent? Explain Price Quantity Demanded Quantity Supplied $1 1000 200 $2 800 240 $3 700 300 $4 640 400 $5 600 600 $6 550 820 $7 520 1000 $8 460 1300 $9 400 1600 $10 300 1950
a. price ceiling. b. price surplus. c. price floor d. market equilibrium price