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Question
An example of a binding price ceiling is ________ the equilibrium price.
a. a minimum wage law that is set above
b. rent control that is set above
c. a black market that sets the price below
d. a minimum wage law that is set below
e. rent control that is set below
Answer
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Price gouging laws will usually result in ________ the product in the distressed market.
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The economic entity most likely to engage in price gouging is
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The long-run effects of rent control support one of the five foundations of economics, namely, that
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A real-life, long-run example of a binding price ceiling isa. a minimum wage law. b. rent control. c. a price gouging law.d. a black market price.e. a ration price.
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What will an individual do differently as a buyer in the black market in the long run?
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e. What he or she does as a buyer in the long run will be no different from what he or she does in the short run.
Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
d. A shortage will continue to exist and will grow smaller over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
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Q:
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b. because it greatly benefits government, which receives additional tax revenue as a result
c. because it greatly benefits all consumers, and they are also voters
d. because it greatly benefits some consumers who are also voters
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