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Government
Government use price ceiling for the protection of consumers and price floor for the protection of producers.
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- What will be the result of an decrease in a price ceiling for gasoline? Group of answer choices The quantity will decrease because the quantity demanded will decrease. The quantity will remain the same; only the price will change. The quantity will increase because the quantity demanded will increase. The quantity will decrease because the quantity supplied will decrease.An increase in the population of a country will cause the demand curve to shift outward and supply to increase. true or falseWith a price ceiling above the equilibrium price, quantity demanded would exceed quantity supplied. quantity supplied would exceed quantity demanded. the market would be in equilibrium. the equilibrium price would be expected to fall over time.
- what sort of shift in supply or demand would result in a market equilibrium with higher prices but lower sales volume?If a city government were to impose a ceiling price on rental prices in the downtown area: quantity supplied would increase. supply would increase. an illegal market would likely emerge. quantity demanded would decrease.what sort of shift in supply or demand would result in a market equilibrium with higher prices and sales volume?
- Question 9 Setting a price ceiling below the equilibrium price can result in a surplus, where the quantity demanded exceeds the quantity supplied. a shortage, where the quantity demanded exceeds the quantity supplied. a surplus, where the quantity supplied exceeds the quantity demanded. a shortage, where the quantity supplied exceeds the quantity demanded. no impact on the quantity demanded or the quantity supplied. Question 10 US minimum wage law is an example of a price floor. price ceiling. law that requires quantity demanded to be equal to quantity supplied. law that allows individual employers and employees to make free decisions. law that sets the minimum number of hours that an employee must work for wages during the week. Question 11 Gross domestic product (GDP) is best defined as the total market…An increase in taste for the good with a simultaneous decrease in subsidies will cause the equilibrium price to fall and equilibrium quantity to increase. True or FalseIf government imposes a price ceiling on a good that is below the market equilibrium price a surplus will develop. a shortage will develop. producers will reduce their sales price. consumers will reduce their demand for the good.
- A binding price ceiling will have which of the following consequences? Group of answer choices There are no consequences to a binding price ceiling. The quantity supplied will always exceed the quantity demanded. There will be downward pressure on prices until quantity demanded equals quantity supplied. There will be upward pressure on prices until quantity demanded equals quantity supplied. The quantity demanded will always equal the quantity supplied.The equilibrium price means that the supply and demand for a product are in balance.True or FalseIf a legal ceiling price is set above the equilibrium price, a shortage of the product will occur. a surplus of the product will occur. a black market will evolve. neither the equilibrium price nor the equilibrium quantity will be affected.
