Question 11 pts

A Price Ceiling is

Group of answer choices

a government mandated minimum price on a good or service

a government mandated maximum price on a good or service

a recommended increase in the price of a good or service

a recommended decrease in the price of a good or service

Flag question: Question 2

Question 21 pts

In order to be binding (have an impact on the market), a price ceiling must be placed [ Select ] ["above", "below", "at"] the equilibrium price.

Flag question: Question 3

Question 34 pts

A binding price ceiling will cause a [ Select ] ["shortage", "surplus"] in the market because at the [ Select ] ["lower", "higher"] price, buyers will want to buy [ Select ] ["less", "more"] but sellers will want to sell [ Select ] ["less", "more"] .

Flag question: Question 4

Question 43.5 pts

Check all of the possible unintended consequences of a binding price ceiling.

Group of answer choices

shortage because buyers are willing to buy more at the artificially low price but sellers are not willing to sell as much

reduction in quality/size because sellers try to cut costs to compensate for the lower price they receive

long lines because there is not enough for everyone who wants the good or service

black markets because both buyers and sellers will try to "get around" the price control

unfairness and bias because sellers will get to "choose" who to sell to

many people end up worse off than before the price ceiling

price ceilings often do more harm than good

Flag question: Question 5

Question 51 pts

A price floor is

Group of answer choices

a government mandated minimum price on a good or service

a government mandated maximum price on a good or service

a recommended increase in the price of a good or service

a recommended decrease in the price of a good or service

Flag question: Question 6

Question 61 pts

In order to be binding (have an impact on the market), a price floor must be placed [ Select ] ["above", "below", "at"] the equilibrium price.

Flag question: Question 7

Question 74 pts

A binding price floor will cause a [ Select ] ["shortage", "surplus"] in the market because at the [ Select ] ["lower", "higher"] price, buyers will want to buy [ Select ] ["less", "more"] but sellers will want to sell [ Select ] ["less", "more"] .

Flag question: Question 8

Question 81 pts

Why do economists generally oppose controls on prices? Check all that apply.

Group of answer choices

Price controls mess up supply and demand - prices aren't able to do their job of bringing them into balance

They generally hurt more than they help

Price controls have negative unintended consequences

Price controls do not work as intended for most people (i.e. rent control is meant to provide affordable housing but instead causes a shortage of housing).