Question 1

Which statement is true?

Accepted Answer

A)  An effective price ceiling is above equilibrium price and causes surpluses.
B)  An effective price ceiling is above equilibrium price and causes shortages.
C)  An effective price ceiling is below equilibrium price and causes surpluses.
D)  An effective price ceiling is below equilibrium price and causes shortages.

Question 2

-A)Is a price of $20 a price floor or a price ceiling?
B)Is there a shortage or a surplus?
C)How much is it?

Accepted Answer

A)Floor
B)...

Question 3

-In the graph shown above at a price of $38

Accepted Answer

A)  there is a surplus.
B)  there is a shortage.
C)  quantity demanded is greater than quantity supplied.
D)  there is a shortage and quantity demanded is greater than quantity supplied,but there is not a surplus.
E)  there is a surplus and quantity demanded is greater than quantity supplied,but there is not a shortage.

Question 4

If supply increases and demand remains unchanged,equilibrium quantity will _______ and equilibrium price will ______________.

Accepted Answer

A)  rise,rise
B)  fall,fall
C)  fall,rise
D)  rise,fall

Question 5

If demand rises and supply remains the same,equilibrium price will _____ and equilibrium quantity will _____.

Accepted Answer

A)  rise,rise
B)  fall,fall
C)  rise,fall
D)  fall,rise

Question 6

If government legislates a price floor that is below the equilibrium price

Accepted Answer

A)  a shortage will develop.
B)  a black market will soon develop.
C)  a surplus will develop.
D)  market price and quantity sold will be unaffecteD.

Question 7

Quantity Demanded  Price  Quantity Supplied 30$106440$85550$65060$44070$220\begin{array}{ccc}	ext { Quantity Demanded } & 	ext { Price } & 	ext { Quantity Supplied } \30 & \$ 10 & 64 \40 & \$ 8 & 55 \50 & \$ 6 & 50 \60 & \$ 4 & 40 \70 & \$ 2 & 20\end{array} Quantity Demanded 3040506070​ Price $10$8$6$4$2​ Quantity Supplied 6455504020​ 
-When price is $6

Accepted Answer

A)  there is a surplus.
B)  there is a shortage.
C)  there is both a surplus and a shortage.
D)  there is neither a surplus nor a shortage.

Question 8

As price falls,quantity demanded ___________.

Accepted Answer

The answer of As price falls,quantity demanded ___________....

Question 9

When market price is below equilibrium price

Accepted Answer

A)  a shortage is generated.
B)  a surplus is generated.
C)  quantity demanded is greater than quantity supplied.
D)  then both a shortage is generated and quantity demanded is greater than quantity supplied,but a surplus is not generated.
E)  then both a surplus is generated and quantity demanded is greater than quantity supplied,but a shortage is not generated.

Question 10

Gas lines were the result of

Accepted Answer

A)  price ceilings.
B)  price floors.
C)  overproduction.

Question 11

-If the government set a price at $16,there would be price __________,that would cause a ___________ of ______ units.

Accepted Answer

A)  floor,shortage,10
B)  floor,surplus,10
C)  ceiling,shortage,10
D)  ceiling,surplus,10

Question 12

Price always tends toward its ______________ level.

Accepted Answer

The answer of Price always tends toward its ______________ level....

Question 13

Which of the following government programs will create a surplus?

Accepted Answer

A)  Rent control
B)  The minimum wage law
C)  Usury laws
D)  Price controls on oil

Question 14

When a market operates so that there are no shortages and no surpluses,then the market is

Accepted Answer

A)  free.
B)  in equilibrium.
C)  in disequilibrium.
D)  subject to non-market intervention.

Question 15

If the government imposes a maximum price that is above the equilibrium price,

Accepted Answer

A)  quantity demanded will be less than quantity supplied.
B)  demand will be greater than supply.
C)  this maximum price will have no economic impact.
D)  the available supply will have to be rationed with a non-price rationing mechanism.

Question 16

-Equilibrium quantity is _____.

Accepted Answer

The answer of 
-Equilibrium quantity is _____....

Question 17

When equilibrium price is higher than market price,quantity demanded is ________ quantity supplied.

Accepted Answer

The answer of When equilibrium price is higher than market...

Question 18

When quantity supplied is greater than quantity demanded,there is a ____________.

Accepted Answer

The answer of When quantity supplied is greater than quantity...

Question 19

During World War II,there was an extensive black market for tires in the United States.The most likely explanation for the existence of the black market was that

Accepted Answer

A)  the price of tires was artificially held down by price controls.
B)  the price of tires was artificially increased by price controls.
C)  tires were one of the few goods not subject to price controls.
D)  gasoline rationing greatly restricted civilian driving.

Question 20

When a price ceiling that has an impact is imposed,it has the effect of

Accepted Answer

A)  decreasing quantity supplied and increasing quantity demanded.
B)  decreasing both quantity supplied and quantity demanded.
C)  increasing quantity supplied and decreasing quantity demanded.
D)  increasing both quantity supplied and quantity demanded.

Exam 4: Supply and Demand

If the government imposes a maximum price that is above the equilibrium price,

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Which of the following government programs will create a surplus?

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When quantity supplied is greater than quantity demanded,there is a ____________.

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Gas lines were the result of

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When equilibrium price is higher than market price,quantity demanded is ________ quantity supplied.

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-In the graph shown above at a price of $38

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As price falls,quantity demanded ___________.

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If demand rises and supply remains the same,equilibrium price will _____ and equilibrium quantity will _____.

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If government legislates a price floor that is below the equilibrium price

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If supply increases and demand remains unchanged,equilibrium quantity will _______ and equilibrium price will ______________.

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When a price ceiling that has an impact is imposed,it has the effect of

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When a market operates so that there are no shortages and no surpluses,then the market is

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Which statement is true?

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-Equilibrium quantity is _____.

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Price always tends toward its ______________ level.

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-If the government set a price at $16,there would be price __________,that would cause a ___________ of ______ units.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

During World War II,there was an extensive black market for tires in the United States.The most likely explanation for the existence of the black market was that

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-A)Is a price of $20 a price floor or a price ceiling? B)Is there a shortage or a surplus? C)How much is it?

Correct AnswerverifiedA)FloorB)...View AnswerShow Answer

When market price is below equilibrium price

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If demand rises and supply remains the same,equilibrium price will _ and equilibrium quantity will _.

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If supply increases and demand remains unchanged,equilibrium quantity will _ and equilibrium price will ________.

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-If the government set a price at $16,there would be price ____,that would cause a _ of __ units.

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A)Floor
B)...
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