In the case of a binding price ceiling, the price paid in the market will be: more than the free market equilibrium price. less than the free market equilibrium price. equal to the free market equilibrium price. unable to be compared with the free market equilibrium price
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In the case of a binding
more than the free market
less than the free market equilibrium price.
equal to the free market equilibrium price.
unable to be compared with the free market equilibrium price.
Step by step
Solved in 3 steps
- In a market with a price ceiling, the price is: Group of answer choices No answer text provided. actually the equilibrium price because the price ceiling has no effect on the market. set lower than the equilibrium price and represents the government mandated maximum price. set higher than the equilibrium price and represents the government mandated maximum price.If a price ceiling is non-binding, the market price will be the equilibrium price. True FalseIn a market with a price floor, the price is Group of answer choices A: set higher than the equilibrium price and represents the government mandated minimum price. B: set lower than the equilibrium price and represents the government mandated minimum price. C: actually the equilibrium price because the price ceiling has no effect on the market.
- If a price floor is not binding, then the equilibrium price is above the price floor. the equilibrium price is below the price floor. there will be a surplus in the market. there will be a shortage in the market.The imosition of a price ceiling on a market will result inQuestion 12.12. A surplus of a product will arise when price is above equilibrium with the result that quantity demanded exceeds quantity supplied. above equilibrium with the result that quantity supplied exceeds quantity demanded. below equilibrium with the result that quantity demanded exceeds quantity supplied. below equilibrium with the result that quantity supplied exceeds quantity demanded. Question 13.13. Which of the following is a consequence of rent controls established to keep housing affordable for the poor? Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. All of the above are consequences of rent controls. Question 14.14. A headline…
- 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.A binding price ceiling creates (a) A shortage or a surplus (b) A surplus (c) A shortage (d) An equilibriumQuestion 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…
- The following are correct descriptions about a Price Ceiling, EXCEPT: Question 8 options: Is the regulated price imposed below the market price that would prevail in equilibrium. A price ceiling will create an excess of supply. A price ceiling will reduce producer's surplus if the regulated price prevails. A price ceiling could lead to an increase in producer's surplus, if a black market emerges.A price ceiling is intended to benefit which group of people? consumers producers The GovernmentIn an attempt to support beef farmers, the Japanese government raised the minimum price for beef in 2008. If the market equilibrium price was below the government's minimum price, then the government's minimum price is an example of a Binding price floor. Non-binding price floor. Binding price ceiling. Non-binding price ceiling.
