Economics final CHAPTER FIVE

Refer to the figure below. If the government set a price ceiling of $40, there would be:

16 units sold.

Refer to the figure below. If the government set a price ceiling of $80, the amount bought and sold will be:

20

Refer to the figure below. If the government sets a price ceiling of $6,

consumers would demand 14 units.

What is a the typical result of a price floor?

excess supply.

A government decides to set a price ceiling on eggs so that eggs are affordable to the poor. The conditions of demand and supply are given in the table below. What will the excess supply or the shortage be if the price ceiling is set at $2.00? PriceQdQs$1.609,0005,000$2.008,5005,500$2.408,0006,400$2.807,5007,500$3.207,0009,000$3.606,50011,000$4.006,00015,000

3,000 shortage.

Suppose the local government is concerned about the health of local school children, and for that reason imposes a price ceiling of $3 on yogurt. Based on the graph below, which of the following is true?

The quantity supplied will be 3 yogurts.

Supply and demand for bushels of wheat (millions) are shown in the following table. A $10.00 price floor would result in: PriceQdQs$5.002616$6.002418$7.002220$8.002121$9.002022$10.001923$11.001824

an excess supply of 4 million bushels and a price of $10.00.

Requiring that all employees get a minimum wage of $8.00 is an example of a

price floor.

Refer to the figure below. If the government sets a price ceiling at $20, there would be a(n):

shortage of 20 units.

Refer to the figure below. If the government set a price floor of $30, there would be

zero excess supply.