Governments often set price floors in an effort to protect _____.(1 point)
Responses
consumers from low market prices
consumers from low market prices
producers from high market prices
producers from high market prices
consumers from high market prices
consumers from high market prices
producers from low market prices
producers from low market prices
Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that frequently follow natural disasters. One unfortunate side effect of these price ceilings is that they will likely _____.(1 point)
Responses
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a surplus as prices are kept from rising to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
lead to a shortage as prices are kept from falling to their equilibrium level
lead to a surplus as prices are kept from falling to their equilibrium level
lead to a shortage as prices are kept from rising to their equilibrium level
Price ($) Quantity Demanded (thousands) Quantity Supplied
(thousands)
1,000 600 300
1,500 500 500
2,000 400 700
2,500 300 900
The table gives the supply and demand schedules in a market for apartments. A government price control is implemented that results in a shortage of 300,000 apartments. Which price control must have been used?
(1 point)
Responses
a price floor of $2,000
a price floor of 2,000 dollars
a price floor of $1,000
a price floor of 1,000 dollars
a price ceiling of $1,000
a price ceiling of 1,000 dollars
a price ceiling of $2,000
a price ceiling of $1,000
In the figure provided, a price of Pc has been set by a government price control.
Two intersecting lines are graphed. The horizontal axis is labeled Quantity and the vertical axis is labeled Price. A line with a positive slope is labeled S intersects a line with a negative slope labeled D. A horizontal dashed line segment that starts at a point labeled P subscript c baseline on the vertical axis intersects each diagonal line above the intersection point. Each of two vertical dashed line segments that start at points labeled Q subscript 1 baseline and Q subscript 2 baseline, respectively, on the horizontal axis intersect each diagonal line, running to the left and to the right of the intersection point of the diagonal lines.
Given the associated quantity demanded, Q1, and quantity supplied, Q2, which of the following describes the quantity Q2−Q1?
(1 point)
Responses
the surplus resulting from the price ceiling Pc
the surplus resulting from the price ceiling upper p subscript c baseline
the shortage resulting from the price ceiling Pc
the shortage resulting from the price ceiling upper p subscript c baseline
the surplus resulting from the price floor Pc
the surplus resulting from the price floor upper p subscript c baseline
the shortage resulting from the price floor Pc