Exam 5: Price Controls and Quotas

A price ceiling will not have an immediate effect if:

The government imposes a price ceiling below the equilibrium price.The price ceiling will cause:

Use the following to answer question 75: Table: Market for Butter \ 1.20 9.0 12.0 1.10 9.5 11.0 1.00 10.0 10.0 0.90 10.5 9.0 0.80 11.0 8.0 -(Table: Market for Butter)Use Figure: Market for Butter.If the government imposes a price floor of $0.90 per kilogram of butter,the quantity of butter actually purchased will be _____ million kilograms.

One of the consequences of the minimum wage has been:

If the demand curve for clams is downward sloping and the supply curve is upward sloping,a quota that is set below the equilibrium quantity will result in a supply price higher than the demand price.

Suppose that the government sets a price floor below the current price of a good.This price floor will:

Rent controls usually set a price ceiling below the equilibrium price,and therefore:

Use the following to answer question 75: Table: Market for Butter \ 1.20 9.0 12.0 1.10 9.5 11.0 1.00 10.0 10.0 0.90 10.5 9.0 0.80 11.0 8.0 -Suppose that the government sets a price floor of $2.85 per kilogram on corn when the current price is $2.55.This price floor will:

Use the following to answer questions : -(Figure: Rent Controls)Use Figure: Rent Controls.If rent controls are set at Rent₀,renters would be willing to pay a price at least as high as:

Use the following to answer questions : -(Figure: Rent Controls)Use Figure: Rent Controls.Suppose that rent controls are imposed.If the government wanted a rent control ceiling to be effective immediately,what is one possible price to set?

Hugo Chávez was the president of Venezuela.Venezuela is a major producer of oil products,which remain a critical component of Venezuela's economy.Suppose that President Chávez wanted to increase his popularity with the citizens of Venezuela and enacted a government policy to reduce the price of gasoline sold at state-owned gas stations to 50% of the previous price.This policy is called a:

Quotas often:

If the government sets out to help low-income people by establishing a maximum amount that can be paid for rent:

Price controls encourage black markets because:

Economic models predict that a binding minimum wage will generally cause increased unemployment for low-skilled workers.

If New York City had no medallion system for taxicabs,assuming that the supply curve of taxicab rides is upward sloping and the demand curve for taxicab rides is downward sloping,economic theory would predict that the price of a taxicab ride would:

If a quota is set above the equilibrium quantity,there will be:

A maximum price legislated by the government is called:

Use the following to answer questions : Figure: Market I -(Figure: Market I)Use Figure: Market I.A price floor of $5 imposed on this market would:

If the supply curve for clams is upward sloping,a quota that is set below the equilibrium quantity will result in a supply price that is lower than the equilibrium price.