Price Ceilings and Price Floors, Equilibrium

Front

When a price ceiling is in place keeping the price below the market price, what’s larger: quantity demanded or quantity supplied?

Back

Quantity demanded

Front

Suppose that the market for coats is described as follows: What is the equilibrium price of coats?

Back

100

Front

Suppose the government sets a price ceiling of $80. How large will the shortage be?

Back

4 million coats

Front

When a price ceiling is in place keeping the price below the market price, which is true of the quantity demanded & quantity supplied?

Back

Quantity Demanded is greater

Front

What is the equilibrium quantity in this graph? Options: $1.50, $1.00, 600, 800

Back

600

Front

If the government set the price at $700, would that be a price ceiling or floor?

Back

Price Floor

Front

If the government set the price at $300, what would be the result?

Back

Shortage of 4,000

Front

In a free market, the price would be

Back

$4

Front

What would result if the price were set at $1.75?

Back

Surplus, Quantity Supplied is greater

Front

This term refers to how much of a good or service consumers are willing to buy at a particular price.

Back

Demand