Question

$15 $13 58 s5 o 120 134 150 165178 190 200 220 250 a.$5 b. $8 c. $13 d. $15 e. $20 13. In the graph above, if there is a $5 price ceiling imposed, what will be the disequilibrium amount? a. There will be a shortage of 25 b. There will be a surplus of 25 There will be neither a shortage or a surplus d. c. There will be a shortage of 53 There will be a surplus of 53 The consequence of a price floor set below the equilibrium price is e. 14. a surplus, where the quantity demanded exceeds the quantity supplied. a. b. a shortage, where the quantity demanded exceeds the quantity supplied. a surplus, where the quantity supplied exceeds the quantity demanded. c. d. a shortage, where the quaniity supplied exceeds the quantity demanded. e. nothing; the price floor will have no impact on the quantity demanded or the quantity supplied. A binding minimum wage is most likely to hurt a. all workers. b. potential workers seeking employment c. workers in jobs that would normally pay less than minimum wage. d. workers in jobs that would normally pay more than minimum wage. e no workers 15.

Answer 1

Ans.13- (A)

At $5 price,quantity demanded is 190 and quantity supplied is 165 so shortage is 190-165= 35 units.

Ans.14- (D)

A price floor must be higher than equilibrium price in order to be effective.

Ans.15- (C)

A higher minimum wage will lead firms to layoff some of their workers who were earning below the minimum wage and hence they become worse off.