Question

Please assist with these questions,

1. Select whether the statement is true or false.

Laws that government enacts to regulate prices (such as price floor and price ceilings) are called price barriers.

Use letters in alphabetical order to select options

A

true

B

false

2. Fill in the blank with the correct answer by typing in the box. The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called consumer ______________________.

3. Which of the following statements best describes consumer surplus in the supply and demand model?

Use letters in alphabetical order to select options

A

Consumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.

B

Consumer surplus is the area in the supply and demand model that is above the market price and above the demand curve.

C

Consumer surplus is the area in the supply and demand model that is below the market price and below the demand curve.

D

Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve.

4. Which of the following statements best describes the relationship between price and quantity demanded for a given good or service?

Use letters in alphabetical order to select options

A

A rise in price of a good or service almost always decreases the quantity demanded of that good or service.

B

A rise in price of a good or service always decreases the quantity demanded of that good or service.

C

A rise in price of a good or service almost always increases the quantity demanded of that good or service.

D

A rise in price of a good or service always increases the quantity demanded of that good or service.

  

5. Which one of the following statements best describes a price ceiling?

Use letters in alphabetical order to select options

A

A price ceiling causes supply to change.

B

A price ceiling keeps a price from falling below a certain level.

C

A price ceiling causes demand to change.

D

A price ceiling keeps a price from rising above a certain level.

Answer 1

Question 1

Price floor and price ceiling fixes the minimum and maximum price of a good.

So, these leads to regulation of prices or controlling of price.

Therefore, laws that government enacts to regulate prices are called price controls.

Thus, the given statement is false.

Hence, the correct answer is the option (B).

Question 2

The amount that individuals would have been willing to pay, minus the amount that they actually paid is called the Consumer Surplus.