Homework Answers
Answer :- Option 'c' is the correct Answer
if the government imposes a price ceiling above the equilibrium price, then the equilibrium price will remain the same.
when the government imposes a price ceiling that is greater than the equilibrium price has no effect and tends to non-binding
Due to this market forces move the economy to the equilibrium and the price ceiling is simply not reached.
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If the government imposes a price ceiling above the equilibrium price, then the equilibrium price will...
. A black market may occur when A) the government imposes a price ceiling above the...
. A black market may occur when A) the government imposes a price ceiling above the market clearing price. B) the government imposes a price floor below the market clearing price. C) the government imposes a price ceiling below the market clearing price. D) the government does not impose either a price ceiling or a price floor.
Suppose the equilibrium price of potatoes is $5 per pound, but the government imposes a price...
Suppose the equilibrium price of potatoes is $5 per pound, but the government imposes a price ceiling of $2 per pound, creating a deadweight loss. True or False: If the government imposes a sales tax of $1 per pound of potatoes (while continuing to maintain the price ceiling), then the deadweight loss will get even larger.
If the government imposes a maximum price in a market that is below the equilibrium price:...
If the government imposes a maximum price in a market that is below the equilibrium price: O A. total surplus in the market does not change. O B. total surplus in the market increases. O C. total surplus may increase or decrease, depending on whether costs are increasing or decreasing in production. O D. total surplus in the market decreases
Beginning with equilibrium in the table above, a government imposed price ceiling at $2 A. means...
Beginning with equilibrium in the table above, a government
imposed price ceiling at $2
A. means that consumption will be 48
B. cause a surplus of 36.
C. cause a shortage of 48.
D. means that consumption will be 84.
E. will lead to an increase in demand.
Price per Loaf Quantity DemandedQuantity Supplied 30 102 $5 48 84 48 84 102 30
1. If the government imposes a price ceiling, then: Group of answer choices producers would be...
1. If the government imposes a price ceiling, then: Group of answer choices producers would be inclined to increase the quantity supplied. producers must charge the ceiling price. the price offered by producers must be at or below the ceiling price. the market supply curve will shift to the right. the price offered by producers must be at or above the ceiling price. 2. If foreign exchange rates are determined by the interaction of supply and demand forces for the...
Consider a market in which the government imposes a price ceiling. Assume that neither supply nor...
Consider a market in which the government imposes a price ceiling. Assume that neither supply nor demand is perfectly elastic nor perfectly inelastic. Which of the following groups will always gain from a price ceiling? Consumer Producers The government Society as a whole, because total surplus will increase No group will always gain from a price ceiling
When a government imposes a price ceiling below the market price on a product or service,...
When a government imposes a price ceiling below the market price on a product or service, which of the following happens? a.Total consumer surplus rises because consumers now pay less for the product b.The total amount of the product or service that is traded in the market rises due to the lower price c.A shortage of supply relative to demand results A per unit tax on a good which is levied on the consumer will usually cause which of the...
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per...
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per month. [Questions 2-6 are related.] Refer to the figure. Suppose landlords ignore the law and rent their apartments for the highest rent they can get. What is the highest rent they can get per month? Price (dollars per month) $2,500 Supply 2,000 1,500 1,000 500 Demand 200 400 600 Quantity (apartments) OA. $1,000 OB. $1,500 C. $2,000 OD. $2,300 Reset Selection Refer to the...
The government sets a price ceiling for health insurance premiums, which is below the equilibrium price....
The government sets a price ceiling for health insurance premiums, which is below the equilibrium price. As a result, a. The health insurance market will be efficient. b. A deadweight loss will be created. c. An excess surplus of health insurance policies will be created. d. The price ceiling will be ineffective. e. None of the above answers is correct.
Assume the market is initially in equilibrium at point A. Then assume the city imposes a price ceiling of pz
Consider the market for apartments in New York City illustrated in the figure below. Assume the market is initially in equilibrium at point A. Then assume the city imposes a price ceiling of pz. How does this affect the market? The price ceiling results in a shortage of apartments The price ceiling results in an equilibrium where supply equals demand. The price ceiling is not binding and has no effect The price ceiling results in a surplus of apartments
. A black market may occur when A) the government imposes a price ceiling above the market clearing price. B) the government imposes a price floor below the market clearing price. C) the government imposes a price ceiling below the market clearing price. D) the government does not impose either a price ceiling or a price floor.
If the government imposes a maximum price in a market that is below the equilibrium price: O A. total surplus in the market does not change. O B. total surplus in the market increases. O C. total surplus may increase or decrease, depending on whether costs are increasing or decreasing in production. O D. total surplus in the market decreases
Beginning with equilibrium in the table above, a government
imposed price ceiling at $2
A. means that consumption will be 48
B. cause a surplus of 36.
C. cause a shortage of 48.
D. means that consumption will be 84.
E. will lead to an increase in demand.
Price per Loaf Quantity DemandedQuantity Supplied 30 102 $5 48 84 48 84 102 30
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per month. [Questions 2-6 are related.] Refer to the figure. Suppose landlords ignore the law and rent their apartments for the highest rent they can get. What is the highest rent they can get per month? Price (dollars per month) $2,500 Supply 2,000 1,500 1,000 500 Demand 200 400 600 Quantity (apartments) OA. $1,000 OB. $1,500 C. $2,000 OD. $2,300 Reset Selection Refer to the...
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