If government imposes a price floor of $2: Quantity Demanded

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Economics

If government imposes a price floor of $2: Quantity Demanded

If government imposes a price floor of $2: Quantity Demanded Price per Unit Quantity Supplied … Show more If government imposes a price floor of $2: Quantity Demanded Price per Unit Quantity Supplied 10 5 50 20 4 40 30 3 30 40 2 20 50 1 10 A)the price floor will not have an effect. B)the price will fall to $1 because producers will be forced to incur losses. C)demand will increase. D)a surplus will result equal to 20 units. E)a shortage will result equal to 20 units. If government imposes a price ceiling of $4: Quantity Demanded Price per Unit Quantity Supplied 10 5 50 20 4 40 30 3 30 40 2 20 50 1 10 A)the price ceiling will not have an effect. B)the price will fall to $1 because producers will be forced to incur losses. C)demand will increase. D)a surplus will result equal to 20 units. E)a shortage will result equal to 20 units. Which of the following is not an example of a price ceiling? A)The Chinese government sets the price of housing in China below equilibrium. B)The government of the former Soviet Union set prices on food below those prevailing in the free market. C)In the 1970s, the Nixon administration imposed wage and price controls, thereby keeping wages and prices from rising. D)In the late 1970s, the U.S. government required gasoline to be sold at a price per gallon that was below what would have prevailed in a free market. E)The U.S. government requires that sugar be sold at a price that exceeds the world price of sugar. In a market where the price is restricted by price floors or price ceilings, A)all sellers will be able to sell everything they produce. B)surpluses and shortages will exist. C)all buyers will get what they want. D)disequilibrium will automatically correct itself. E)surpluses and shortages will put pressure on the price to move to its equilibrium. Which of the following is true of a price floor? A price floor. . . A)allows supply and demand to function effectively. B)is set such that the price is not allowed to increase above a certain level. C)is beneficial to buyers in a market. D)usually creates a shortage of a good in a market. E)is set such that the price is not allowed to decrease below a certain level. The removal of a price ceiling in a market results in: A)an increase in the market price. B)a shortage in the market. C)over-production of the commodity and a surplus. D)a fall in the market price. E)abnormal profits for producers. In the market for eggs, a removal of the price ceiling on eggs results in: A)an increase in the demand for eggs. B)farmers supplying more eggs to the market. C)consumers demanding a larger quantity of eggs. D)farmers supplying more eggs to the market. E)consumers demanding a smaller quantity of eggs. Without money, no transaction can occur. A)True B)False In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers. A)True B)False An example of barter is voluntary work at an old-age home. A)True B)False PLEASE SHOW ME YOUR WORK FOR THE ANSWERS THAT YOU SELECTED AND I WILL RATE YOU. SHOW ME THAT YOU’RE CONFIDENT OF YOUR ANSWERS AND I WILL RATE YOU. I APPRECIATE ALL OF YOUR EXPERT ADVICE. • Show less

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