When a shortage of a good is present due to a price ceiling,the amount supplied will be greater than the amount demanded.the quality of the good will generally improve.O non-price factors, such as discrimination or waiting in line, will playa greater role in the allocation of the good.O the demand for the product will increase and, thereby, eliminate theshortage.

Shortage occurs when quantity demanded of a good exceeds quantity supplied. A binding and effective…

When a shortage of a good is present due to a price ceiling, O the amount supplied will be greater than the amount demanded. O the quality of the good will generally improve. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. O the demand for the product will increase and, thereby, eliminate the shortage.

When a shortage of a good is present due to a price ceiling, O the amount supplied will be greater than the amount demanded. O the quality of the good will generally improve. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. O the demand for the product will increase and, thereby, eliminate the shortage.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

The following table summarizes information about the market for principles of economics textbooks: Price Quantity Demanded per Year Quantity Supplied per Year $45 4,300 300 55 2,300 700 65 1,300 1,300 75 800 2,100 85 650 3,100 What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.
Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?
The following table summarizes information about the market for principles of economics textbooks: What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasoline