Prices

Suppose the government sets a price ceiling of $80. How large will the shortage be?

• 5 million coats

• 4 million coats

• 3 million coats

• 2 million coats

Suppose again that the government sets a price ceiling of $80 and that people line up to get this good. For how long will people wait in line to obtain a coat if they value their time at $10 an hour?

• 2 hours

• 3 hours

• 4 hours

• neither

If the government creates a price ceiling of $30, which one of the following statements is correct?

• The quantity demanded = 60

• The quantity supplied = 160

• There is a surplus of 100

• There is a shortage of 100

If the Market price is $50,, which of the following is True of Quantity Supplied and Quantity Demanded

• quantity demanded = 120

• quantity supplied = 120

• quantity demanded = 120 & quantity supplied =120

• quantity demanded = quantity supplied

A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor?

• price ceiling

• price floor

A review of the jargon: Is rent control a “price ceiling” or a “price floor?”

• price ceiling

• price floor

Bureau of Labor Statistics (BLS), the cost of store-bought food increased by what ____ percent from February 2020 to May 2023?

• 15.5%

• 12.5%

• 35.5%

• 23.5%

• 10.5%

What is the term for the maximum legal price that can be charged for a good or service?

• Price ceiling

• Price floor

• Equilibrium price

• Market price

Which of the following is an example of a price floor?

• Minimum wage

• Rent control

• Subsidy

• Tax

What happens to the quantity demanded when the price of a good increases, assuming all else is constant?

• It increases

• It decreases

• It remains the same

• It becomes zero