Price Controls Reteaching

Price Controls Reteaching

Multiple Choice

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

• Surplus of 4,000
• Surplus of 2,000
• Shortage of 4,000
• Shortage of 2,000

Multiple Choice

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

• Price Ceiling
• Price Floor 
• Neither

Multiple Choice

A price floor will result in a

• shortage

• surplus

• equilibrium price

• equilibrium quantity

Multiple Choice

A price ceiling will result in a

• shortage

• surplus

• equilibrium price

• equilibrium quantity

Multiple Choice

This is the minimum price buyers are required to pay for a good. It's a lower limit for the price.

• equilibrium

• shortage

• price floor

• price ceiling

Multiple Choice

A _______________ is a maximum price sellers are allowed to charge for a good. It's an upper limit for the price.

• equilibrium

• shortage

• surplus

• price ceiling

Multiple Choice

In order to be effective, a price floor must be set _____ the equilibrium price.

• Below

• Above

• To the right

• To the left

Multiple Choice

In order to be effective, a price ceiling must be set _____ the equilibrium price.

• Below

• Above

• To the right of

• To the left of

Multiple Choice

What is the result of the government setting a price ceiling on apartments for rent? 

• apartments are available but too expensive
• people start dividing their homes in to apartments to rent
• people want to rent but struggle to find apartments
• construction jobs increase as more people build new apartments

Multiple Choice

What is the supply with a price floor of $60?

• 50
• 100
• 150
• 200

Multiple Choice

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

• Quantity Demanded is greater

• Quantity Supplied is greater

• Quantity Demanded equals Quantity supplied

Multiple Choice

Which of the following is an advantage of setting a price ceiling?

• Suppliers maximize their profits.
• Consumers can purchase as much as they want. 
• Consumers can continue to afford an essential good or service. 
• The market will be forced into equilibrium.

Multiple Choice

If a price ceiling causes a black market to emerge, the price in the black market will be 

• lower than the price in the controlled market.
• higher than the price in the controlled market
• the same as the price in the controlled market.