Multiple Choice
Which statement illustrates what an effective price ceiling does to a market price?
A) Like a helium balloon bumps against a room ceiling, unable to rise to the level to which it would go if it were outside, price ceilings hold prices down below equilibrium.
B) Painting a ceiling white can make it appear higher than it actually is. Price ceilings make a price appear higher than it actually is.
C) Something attached to the ceiling is higher than it would be if it were set on the floor. Setting a price ceiling makes a price higher than it would be in a free market.
D) Just like a roof can leak in different places, price ceilings can leak; a market with price ceilings can end up with many different prices at once.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: It would be difficult for a private
Q2: If a price ceiling is set above
Q3: A $20 minimum fare in a market
Q5: (Figure: Determining Surplus 6) According to the
Q6: Consider the market for new homes. Ceteris
Q7: If a consumer is willing to pay
Q8: The government often provides funding for the
Q9: Which of these would create an external
Q10: (Figure: Determining Surplus and Loss) In the
Q11: Explain how a price control, such as