Supply, Demand, Governmental Policies

What is a price ceiling?

• Price set by the government to regulate the market

• Price determined by supply and demand

• Minimum price at which a good can be sold

• Maximum price at which a good can be sold

Which of the following statements is true for a price ceiling?

• It increases the supply of the good

• It can lead to a shortage of the good

• It always leads to a surplus of the good

• It does not affect the market price

What is the price floor?

• Minimum price at which a good can be sold

• Price determined by supply and demand

• Maximum price at which a good can be sold

• Price set by the government to regulate the market

Which of the following statements is true for a price floor?

• It can lead to a surplus of the product

• It increases the demand for the product

• It does not affect the market price

• It always leads to a shortage of the product

What effect does a tax on sellers have on market prices?

• Prices decrease

• Prices remain unchanged

• Prices increase

• Prices become more stable

Which of the following factors determines who bears the burden of a tax?

• Sales volume

• Who pays the tax

• Elasticity of demand and supply

• Market competition

What happens to the quantity of goods in the market when a tax is introduced?

• The quantity of goods decreases

• The quantity of goods becomes unpredictable

• The quantity of goods increases

• The quantity of goods remains unchanged

Which of the following statements is true regarding the minimum wage?

• It does not affect the labor market

• It always leads to an increase in employment

• It can lead to unemployment

• It reduces workers' income

What impact does rent control have on the housing market in the short term?

• Creates a housing shortage

• Reduces rental prices

• Increases housing supply

• Improves housing quality

What impact does rent control have on the housing market in the long term?

• Creates a significant housing shortage

• Increases the supply of housing

• Reduces rental prices

• Improves the quality of housing