Price Quiz

Which of the following best refers to the market equilibrium price?

• Surpluses decrease the number of goods.

• Demand is higher than supply.

• There is a shortage created by price ceilings.

• The quantity demanded is the same as the quantity supplied.

What generally happens when the government sets a price ceiling?

• There is a surplus.

• Supply is greater than demand.

• There is a shortage created by price ceilings.

• No change in supply or demand.

Which government action can result in the creation of illegal markets?

• price floor

• price ceiling

• price window

• price inhibitor

What generally happens when the government sets a price floor?

• No change in supply or demand.

• THere is a shortage followed by a surplus.

• there is a shortage

• there is a surplus

Minimum wages are an example of

• price floor

• equilibrium price

• surplus

• price ceiling

When governments set a maximum price that can be charged for a good/service, it is called a ______________.

• equilibrium price

• price ceiling

• price floor

• price inhibitor

What will happen in the rice market if buyers are expecting higher prices in the near future?

• The current demand for rice will increase.

• The current demand for rice will decrease

• The demand for rice will not change.

• The supply of rice will increase.

Other things equal, when the price of a good rises, the quantity supplied of the good also rises. What best refers to this situation?

• The law of increasing costs.

• The law of diminishing returns.

• The law of supply.

• The law of demand.