Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 5.3, Problem 2ST
To determine
The similarity between 10 am classes and
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Which of the following is NOT one of the consequences of a binding Price Ceiling?
Select one:
a.
an illegal black market
b.
a shortage
c.
a surplus
d.
a decrease in the price of the good below its equilibrium price
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, the
Consider a minimum wage law -- a law where the government requires businesses pay at least a certain amount to workers. This is an example of a price ________; this kind of price control causes _______ when binding.
floor; a surplus
floor; a shortage
ceiling; a shortage
ceiling; a surplus
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Suppose college students are given two options....Ch. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Give an example to illustrate that someone may pay...Ch. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Prob. 14QPCh. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
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- The market demand is given by P=250-2Q and the market supply by P=40+Q. What will be the shortage on the market, if a price ceiling of 77 is being implemented?arrow_forwardWhat is the difference between a price floor and price ceiling? According to the laws of demand and supply and how market equilibrium, efficiency, and equity are reached, do attempts to repeal those laws and market results with price floors and price ceilings justify legislative bodies to implement price controls? A price floor will lead to a transfer of consumer surplus to producer surplus; a price ceiling will lead to a transfer of producer surplus to consumer surplus; both price regulations lead to deadweight losses, which is a loss of surplus to society. Why?arrow_forward) Determine a scenario where government imposes a binding restriction on price (ceiling or floor).arrow_forward
- 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 informationarrow_forwardIn a market with a binding price floor, a decrease in the floor price will ________________ the quantity supplied, ____________ the quantity demanded, and reduce the _____________arrow_forwardAsap In the case of a binding price ceiling, the price paid in the market will be: more than the free market equilibrium price. less than the free market equilibrium price. equal to the free market equilibrium price. unable to be compared with the free market equilibrium price.arrow_forward
- A real-life, long-running example of a binding price floor is Group of answer choices rent control. a price gouging law. a black market price. a ration price. a minimum wage law.arrow_forwardIf a government price control was set a price of $2. Which kind of price control would it be? price ceiling price floor no price control can exist below the equilibriumarrow_forwardWhich of the following is the most likely result of a rent control law that creates a binding price ceiling? A shortage of rentable homes. A surplus of rentable homes. The quality of rental homes will increase. All people will be able to rent a home.arrow_forward
- The market demand is given by P = 250 - 2Q and the market supply by P = 40 + Q What will be the producer surplus, if a price ceiling of 85 is being implemented?arrow_forwardExplain why the imposition of the price ceiling does not result in a deadweight loss.arrow_forwardIn 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.arrow_forward
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