economics

When the government imposes a binding price floor, it causes....

• The supply curve to shift to the left

• The demand curve to shift to the right

• A shortage of the good to develop

• A surplus of the good to develop

In a market with a binding price ceiling, an increase in the ceiling will _____ the quantity supplied.

• increase

• decrease

• shortage

• surplus

When a good is taxed, the burden of the tax falls mainly on consumers if......

• the tax is levied on consumers.

• supply is elastic, and demand is inelastic.

• supply is inelastic, and demand is elastic.

• the tax is levied on producers.

A small elasticity of demand means that buyers do not have good alternatives to consuming this particular good

• true

• false

A small elasticity of supply means that buyers do not have good alternatives to producing this particular good

• true

• false

A legal minimum on the price at which a good can be sold

A legal maximum on the price at which a good can be sold