Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow: Group of answer choices A shortage will occur because the price ceiling is below the equilibrium price. A surplus will occur because the price ceiling is below the equilibrium price. The price ceiling will not affect the market which will remain at equilibrium. A surplus will occur because the price ceiling is above the equilibrium price.

Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow: Group of answer choices A shortage will occur because the price ceiling is below the equilibrium price. A surplus will occur because the price ceiling is below the equilibrium price. The price ceiling will not affect the market which will remain at equilibrium. A surplus will occur because the price ceiling is above the equilibrium price.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Similar questions

With a price ceiling above the equilibrium price, quantity demanded would exceed quantity supplied. quantity supplied would exceed quantity demanded. the market would be in equilibrium. the equilibrium price would be expected to fall over time.
Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow: A shortage will occur because the price ceiling is below the equilibrium price. A surplus will occur because the price ceiling is below the equilibrium price. The price ceiling will not affect the market which will remain at equilibrium. A surplus will occur because the price ceiling is above the equilibrium price.
If the government sets a price ceiling in the market for fuel oil that falls below the equilibrium price , it will Question 14 options: lead to the quantity demanded of fuel oil exceeding the quantity supplied. lead to the quantity supplied of fuel oil exceeding the quantity demanded. decrease the demand for fuel oil. increase the supply of fuel oil. have no effect in the market for fuel oil.
Question 9 Setting a price ceiling below the equilibrium price can result in a surplus, where the quantity demanded exceeds the quantity supplied. a shortage, where the quantity demanded exceeds the quantity supplied. a surplus, where the quantity supplied exceeds the quantity demanded. a shortage, where the quantity supplied exceeds the quantity demanded. no impact on the quantity demanded or the quantity supplied. Question 10 US minimum wage law is an example of a price floor. price ceiling. law that requires quantity demanded to be equal to quantity supplied. law that allows individual employers and employees to make free decisions. law that sets the minimum number of hours that an employee must work for wages during the week. Question 11 Gross domestic product (GDP) is best defined as the total market…
Setting a price ceiling below the equilibrium price will result in: Question 10 options: A) a shortage, where the quantity supplied exceeds the quantity demanded. B) no impact on the quantity demanded or on the quantity supplied. C) a surplus, where the quantity supplied exceeds the quantity demanded. D) a shortage, where the quantity demanded exceeds the quantity supplied.
If a price ceiling of $7 is set, the quantity of soft drink to be exchanged will be 3. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result.
What will be the result of an decrease in a price ceiling for gasoline? Group of answer choices The quantity will decrease because the quantity demanded will decrease. The quantity will remain the same; only the price will change. The quantity will increase because the quantity demanded will increase. The quantity will decrease because the quantity supplied will decrease.
Suppose the equilibrium price is $10. Then a price ceiling of $15 would Be ineffective. Force the market price to $15. Force the market price to somewhere strictly between $10 and $15. Cannot be determined.