1. Questions

Economics

Economics Unit 3 Lesson 8: Price Ceilings and Floors Quick Check

1. A binding price ceiling is a mandated _____.(1 point)

a. maximum price above the market equilibrium price
b. minimum price above the market equilibrium price
c. maximum price below the market equilibrium price
d. minimum price below the market equilibrium price

2. Governments often set price floors in an effort to protect _____.(1 point)

a. producers from high market prices
b. consumers from low market prices
c. producers from low market prices
d. consumers from high market prices

3. 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)

a. lead to a shortage as prices are kept from falling to their equilibrium level
b. lead to a shortage as prices are kept from rising to their equilibrium level
c. lead to a surplus as prices are kept from rising to their equilibrium level
d. lead to a surplus as prices are kept from falling to their equilibrium level

Questions 4 and 5 have pictures so I cant post them on here