A price floor when it is set ________ the equilibrium price creates ________. a) above; excess...
A price floor when it is set ________ the equilibrium price creates ________.
a) above; excess supply
b) below; excess supply
Homework Answers
A price floor when it is set ________ the equilibrium price creates ________.
Answer
a) above; excess supply
It is the minimum price the buyers are desired to pay for a good or service. Price floor is effective when it is above the equilibrium price. Equilibrium price is always determined at that point where the demand equals to supply. When a price set above the equilibrium price, is called price floor. Due to the price floor, excess supply will be created. In excess supply, the quantity supplied will be more than the quantity demanded.
Answer-a) above the equilibrium price ; excess supply will be created
Add Answer to:
A price floor when it is set ________ the equilibrium price
creates ________.
a) above; excess...
In the Egg market, a price floor that is set above market equilibrium will cause 1...
In the Egg market, a price floor that is set above market equilibrium will cause 1 - queuing on the part of consumers. 2 a surplus. 3 a shortage. 4 an excess quantity demanded.
If a price floor is set below the equilibrium price in a market: A) a shortage...
If a price floor is set below the equilibrium price in a market: A) a shortage of results. B) a surplus results. C) the equilibrium price cannot be reached. D) there is no impact on the market.
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand...
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand is not linked to price but to quantity b. below c. equal to d. above A supply curve is a graphical illustration of the relationship between quantity supplied and Select one: a. demand. b. price. c. cost of production d. quantity demanded.
Refer to the figure below. If the government set a price floor of $30, there would...
Refer to the figure below. If the government set a price floor
of $30, there would be
a) zero excess supply
b) excess supply of 16 units
c) excess supply of 12 units
90 80 70 60 50 40 30 20 10 4 8 12 16 20 24 28 32 36
A binding price floor exists when the price is not allowed to increase above a certain...
A binding price floor exists when the price is not allowed to increase above a certain level. True False Effective and binding price floors will NOT lead to a social surplus "dead-weight-loss." True False Inferior goods are negatively correlated to changes in income, i.e., as income increases the demand for inferior goods decreases. True False If the price of tennis rackets increases and causes the demand for tennis balls to shift to the left, Tennis rackets and tennis balls are...
Recall this information from the text: “Price ceilings prevent a price from rising above a certain...
Recall this information from the text: “Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, the quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result. Price floors and price ceilings...
Refer to Figure 5.2. An example of an effective price ceiling would be if the government set rental rates for apartments at
25. Refer to Figure 5.2. An example of an effective price ceiling would be if the government set rental rates for apartments at a $700 b.$600 c. $400. d.$500.26. Refer to Figure 5.2. At the effective (binding) price ceiling: a quantity supplied exceeds quantity demanded b. demand exceeds supply c. supply exceeds demand d. quantity demanded exceeds quantity supplied 27. Refer to Figure 5.2. At the effective (binding) price ceiling a. the price will remain constant because the market is in equilibrium. b. the price will increase because...
1. The graph below represents the market for electric cars. If a price floor is set...
1. The graph below represents the market for electric cars. If a
price floor is set at $92,000, calculate the surplus of cars that
will result.
____ # of electric cars, please provide your explanation so that
I can apply it to future problems.
2.) Government intervention of setting price controls impacts
the __________________. As a result, when a price floor is set, a
very likely outcome is a ______________ in the market.
market equilibrium; surplus
market equilibrium; shortage
supply...
2. A binding price floor A. has no effect B. creates a permanent surplus C. creates a temporary surplus...
2. A binding price floor
A.
has no effect
B.
creates a permanent surplus
C.
creates a temporary surplus
D.
creates a permanent shortage
3. Protection of a new industry until it becomes strong enough
to compete with foreign producers is based on the argument of
A.
infant industries.
B.
government revenue creation.
C.
reciprocity.
D.
creation of a level playing field.
E.
national defense.
4. Economists prefer tariffs to free trade since tariffs do not
have a deadweight loss....
Paragraph Styles True or false 1- Minimum wage is a good example of a price floor....
Paragraph Styles True or false 1- Minimum wage is a good example of a price floor. 2- Domestic producers typically benefit when their government decrease tariff 3- Minimum wage laws typically result in a shortage 4 GATT was created during the Clinton ad. 5- A corrective tax is good example of command control policy. Multiple choice A non-binding price floor can be seen on graph as a: a. Vertica line to the left of the equilibrium b. Horizontal line below...
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand is not linked to price but to quantity b. below c. equal to d. above A supply curve is a graphical illustration of the relationship between quantity supplied and Select one: a. demand. b. price. c. cost of production d. quantity demanded.
Refer to the figure below. If the government set a price floor
of $30, there would be
a) zero excess supply
b) excess supply of 16 units
c) excess supply of 12 units
90 80 70 60 50 40 30 20 10 4 8 12 16 20 24 28 32 36
1. The graph below represents the market for electric cars. If a
price floor is set at $92,000, calculate the surplus of cars that
will result.
____ # of electric cars, please provide your explanation so that
I can apply it to future problems.
2.) Government intervention of setting price controls impacts
the __________________. As a result, when a price floor is set, a
very likely outcome is a ______________ in the market.
market equilibrium; surplus
market equilibrium; shortage
supply...
2. A binding price floor
A.
has no effect
B.
creates a permanent surplus
C.
creates a temporary surplus
D.
creates a permanent shortage
3. Protection of a new industry until it becomes strong enough
to compete with foreign producers is based on the argument of
A.
infant industries.
B.
government revenue creation.
C.
reciprocity.
D.
creation of a level playing field.
E.
national defense.
4. Economists prefer tariffs to free trade since tariffs do not
have a deadweight loss....
Paragraph Styles True or false 1- Minimum wage is a good example of a price floor. 2- Domestic producers typically benefit when their government decrease tariff 3- Minimum wage laws typically result in a shortage 4 GATT was created during the Clinton ad. 5- A corrective tax is good example of command control policy. Multiple choice A non-binding price floor can be seen on graph as a: a. Vertica line to the left of the equilibrium b. Horizontal line below...
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