(1) (2) (3) (4) (5) Qd Od Price Os Os 60 50 $12 80 90 70 60 11 70 80 90 100 70 10 60 78 80 9 60 110 48 50 Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $12 Multiple Choice a shortage of 40 units would occur the market would clear demand would change from columns (3) and (2) to columns (3) and ( a surplus of 40 units would occur (Figure: Determining Surplus and Loss) In the graph, if the government sets a minimum price of $12, this is an example of a(n) 16 12 5 20 40 O efficient price ceiling. O binding price ceiling. O binding price floor. efficient price floor.
(1) (2) (3) (4) (5) Qd Od Price Os Os 60 50 $12 80 90 70 60 11 70 80 90 100 70 10 60 78 80 9 60 110 48 50 Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $12 Multiple Choice a shortage of 40 units would occur the market would clear demand would change from columns (3) and (2) to columns (3) and ( a surplus of 40 units would occur (Figure: Determining Surplus and Loss) In the graph, if the government sets a minimum price of $12, this is an example of a(n) 16 12 5 20 40 O efficient price ceiling. O binding price ceiling. O binding price floor. efficient price floor.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:(1)
(2)
(3)
(4)
(5)
Qd
Od
Price
Os
Os
60
50
$12
80
90
70
60
11
70
80
90
100
70
10
60
78
80
9
60
110
48
50
Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $12
Multiple Choice
a shortage of 40 units would occur
the market would clear
demand would change from columns (3) and (2) to columns (3) and (
a surplus of 40 units would occur
(Figure: Determining Surplus and Loss) In the graph, if the government sets a minimum price of $12, this is an
example of a(n)
16
12
5
20
40
O efficient price ceiling.
O binding price ceiling.
O binding price floor.
efficient price floor.
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