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What is price ceiling?

Price ceiling is the maximum price that a firm may charge for a good or service

what is the effect on demand when the price ceiling is set below the equilibrium price ?

Price ceilings creates excess demand when it is set below the equilibrium price

What effect would a price ceiling on gasoline have on the market for gasoline?

A price ceiling on gasoline would cause a shortage of gasoline in the market

who do price ceilings benefit?

Price ceilings benefit the buyers of certain goods

what is the effect of price ceilings on consumer surplus?

Price ceilings result in higher consumer surplus

what is the effect of price ceilings on producer surplus?

Price ceilings result in lower producer surplus

If there is excess demand for a product because of price controls, we can be sure that the price control being used is a?

price ceiling

An effective ceiling price will result in

a product shortage

Price floors and ceiling prices interfere with the rationing function of _____

prices

the shortage associated with a price ceiling will be greater the greater the _______ of both demand and supply

greater the elasticity of both demand and supply

Black markets are associated with

ceiling prices and the resulting product shortages

Price ceilings and price floors interfere with the rationing function of _____

prices

A price ceiling means that

the government is imposing a legal price that is below the equilibrium price

what would happen if ceiling price is placed on hamburgers

the quantity demanded will exceed the quantity supplied, a black market for hamburger may evolve, and the consumers may want government to ration hamburger.

what would happen if a legal ceiling price is set above the equilibrium price

neither the equilibrium price nor equilibrium quantity will be affected