Equilibrium & Price Controls

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

• a shortage
• a surplus
• limited choices
• None of the above

At market equilibrium there is

• a shortage
• excess demand
• the same amount of supply and demand
•  a surplus

The minimum legal price that can be charged is called a

• price ceiling

• price floor

• price fan

• price stair

Price ceilings lead to ___________ and price floors lead to ___________.

• surplus;shortage
• shortage;surplus

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

• Price Ceiling
• Price Floor 
• Neither

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

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

• 50
• 100
• 150
• 200

What is the result of the government implementing a price floor of $60

• There would be a shortage of 100 since it is cheaper for consumers 
• There would be a surplus of 100 because it is more expensive for consumers 
• There would be a shortage of 100 because it is assisting the suppliers
• There would be a surplus of 100 because it is beneficial to consumers 

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

If a price floor was set at 320, what quantity would be purchased?

• 20
• 40
• 60
• 80