A price floor tries to keep pricesand, when a price floor is non-binding,it's put at a price the equilibriumprice.low; aboveO high; belowlow; belowO high; above Pick all of the following that aremeasured in dollars (you must pick allcorrect answers):O deadweight lossconsumer surplusO price elasticity of demandO producer surplustax revenue

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A price floor tries to keep prices and, when a price floor is non-binding, it's put at a price _the equilibrium price. low; above O high; below O low; below O high; above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A price floor tries to keep prices
and, when a price floor is non-binding,
it's put at a price the equilibrium
price.
low; above
O high; below
low; below
O high; above

Pick all of the following that are
measured in dollars (you must pick all
correct answers):
O deadweight loss
consumer surplus
O price elasticity of demand
O producer surplus
tax revenue

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Suppose, the government has decided that the free-market price of sugar is too low. Government has imposed a binding price floor of per kg sugar at 50 taka, whereas, the market price was 40 taka per kg before the announcement. a. Explain the effects of this flooring price on the demand and supply of the sugar market. In your graph, show the effects of the price changes on quantity demanded and quantity supplied. Does it create excess supply or excess demand? What will happen to the market price? b. In the above situation, who (buyers or sellers) is going to get the benefit from such policy? Explain it in your own words (clue: use a graph where a Price flooring is binding).
(This question refers to the MRU video 'Price Floors: The Minimum Wage') A price floor is a price: Select one: O a above which it is inefficient to buy or sell. O b. above which it is illegal to buy or sell. O c below which it is inefficient to buy or sell. O d. below which it is illegal to buy or sell.
Which of the following is true about price gouging laws? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C Question 5 d Price gouging laws are an example of binding price floor. Price gouging laws result in a surplus of goods in states after major weather events. Price gouging laws reduce the quantity supplied compared to an unrestricted market. Price gouging laws are only binding when they are above the equilibrium price. □
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