Question

22. In general, the price buyers pay in a market will decrease if the government increases a binding price floor in that market. b. a. increases a binding price ceiling in that market. decreases a tax on the good sold in that market. d. C. More than one of the above is correct 23. Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk? Buyers and sellers of milk have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling b. Sellers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. a Buyers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole. C d. 24. Suppose the government has imposed a price floor on cellular phones. Which of the following events could transform the price floor from one that is binding to one that is not binding? Cellular phones become less popular. b. Traditional land line phones become more expensive. C. The components used to produce cellular phones become less expensive. d. а. Firms expect the price of cellular phones to fall in the future. 25. Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars? a. slow replacement of old rental cars with newer ones b. free gasoline given to people as an incentive to a rent a car c. enhanced maintenance programs to promote the high quality of the cars d. frequent rental programs such as "Rent nine times and the tenth rental is free!" 26. If the government imposes a tax requiring sellers of college textbooks to send $10 to the government for every textbook they sell, then buyers of textbooks are unaffected by the tax. the total price sellers of textbooks receive is $10 less per textbook than they were receiving before the a. b. tax. the supply curve for textbooks shifts upward by $10. d. All of the above are correct С. 27. If the government removes a tax on a good, then the quantity of the good sold will a. decrease. b. increase. not change. d. All of the above are possible C. 28. A tax imposed on the sellers of a good will raise the a. effective price received by sellers and raise the equilibrium quantity. b. effective price received by sellers and lower the equilibrium quantity. c. price paid by buyers and raise the equilibrium quantity. d. price paid by buyers and lower the equilibrium quantity.

I need help with these Mcq's please. Thank you

Answer 1

Ans22) the correct option is b) increases a binding price ceiling in that market.

Ans23) the correct option is c) buyers of milk, recognizing that the . ..........

Ans24) the correct option is b) Traditional land line phones become more expensive.

Ans25) the correct option is a) slow replacement of old rental cars with newer ones