Price Controls Ceilings and Floors

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

At the price of 1.00 there is a

Back

shortage of 400

Front

An effective price floor must be set above equilibrium, resulting in:

Back

a surplus

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

If the government creates a price floor of $80, which one of the following statements is correct? The quantity demanded = 60, The quantity supplied = 180, There is a shortage of 140, There price floor is ineffective

Back

The quantity demanded = 60

Front

If the government creates a price ceiling of $30, which one of the following statements is correct? The quantity demanded = 60, The quantity supplied = 160, There is a surplus of 100, There is a shortage of 100

Back

There is a shortage of 100

Front

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

Back

Surplus, Quantity Supplied is greater

Front

In a free market, the price would be

Back

$4