EBK ESSENTIALS OF ECONOMICS
7th Edition
ISBN: 8220102452107
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 6, Problem 1QCMC
To determine
The impact of a binding
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An increase in an effective price ceiling will do what in the relevant market?
a. The surplus will increase.b. The surplus will decrease.c. The shortage will increase.d. The shortage will decrease.
In a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the same
The government imposes a price ceiling below the equilibrium price. Which of the following are the effects of this price ceiling?
A.
Shortage
B.
Deadweight loss
C.
Inefficiently low quality of the good
D.
Both A and B
E.
All of the above
F.
None of the above
Chapter 6 Solutions
EBK ESSENTIALS OF ECONOMICS
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Similar questions
- If a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardWhen the government imposes a binding price floor,it causesa. the supply curve to shift to the left.b. the demand curve to shift to the right.c. a shortage of the good to develop.d. a surplus of the good to developarrow_forwardWhich government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d a. The setting of a maximum price b. The setting of a minimum price c. The imposition of a tax d. The granting of subsidyarrow_forward
- Which of the following will cause a decrease in consumer surplus? a. an increase in the number of sellers of the good b. a decrease in the production cost of the good c. sellers expect the price of the good to be lower next month d. the imposition of a binding price floor in the marketarrow_forwardIn the market for Widgets, the equilibrium price is $ 20 and the equilibrium quantity is 5000 Widgets, which of the following statements is FALSE? A. None of the above B. If the government sets a price ceiling at $ 15 companies will increase the quantity supplied C. If the government sets the price floor for widgets at $ 25 there will be a surplus of widgets in the market D. If the price ceiling is set at $ 15 there will be a shortage of Widgets in the marketarrow_forwardPeople scalping tickets for the Super Bowl will be successful at selling the tickets for a profit a.when prices are too high. b.only when there is excess supply. c.when the price set by the National Football League is less than the market equilibrium price. d.any time the Super Bowl is popular.arrow_forward
- If a price ceiling is not binding, then a. the market will be less efficient than it would be without the price ceiling. b. there will be a surplus in the market. c. there will be a shortage in the market. d. there will be no effect on the market price or quantity sold.arrow_forwardA price ceiling: a. would be imposed if the government believes the market equilibrium price is too low. b. is the lowest price that the law will allow to be charged in the market. c. is the price that must be charged in the market. d. is the highest price that the law will allow to be charged in the market.arrow_forwardAn effective price ceiling: A. Increases the quantity supplied. B. Is set above the equilibrium price. C. Results in a surplus. D. Is set below the equilibrium price.arrow_forward
- Please help earrow_forwardK The graph shows the market for college education. To encourage the efficient number of students to enroll colleges receive a subsidy Draw the new supply curve following introduction of the subsidy. Label it A subsidy is a payment that to cover part of the costs of education. OA. colleges make to students OB B. students make to the colleges OC. the government makes to colleges OD. students make to the teachers 60 50- 40- 30- 20 10- 0 of 0 Price and cost (thousands of dollars per student per ye Q SMC MSB D-MB 2 4 6 8 10 Quantity (thousands of students per year) >>> Draw only the objects specified in the question 12arrow_forward37. Which of the following factor is affecting supply negatively? a. Tax b. Technology c. Subsidy d. Favorable climatearrow_forward
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