A) 223,000
B) 3.5
C) 103,000
D) 200,000
E) 169,000
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A) There would be a shortage of 28,990 apartments.
B) There would be a surplus of 28,990 apartments that is reduced,over time,as individuals rent apartments in the illegal black market.
C) There would be neither a shortage nor a surplus.
D) There would be a surplus of 28,990 apartments that is eliminated through individuals renting apartments in the illegal black market.
E) There would be a surplus of 28,990 apartments that increases as houses and condominiums are converted into apartments.
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Correct Answer
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A) There will be a shortage of 200 generators.
B) There will be a shortage of 100 generators.
C) The government will intervene and order a surplus of 100 generators.
D) Price gougers will enter the market and provide a surplus of 100 generators.
E) No changes will occur in the market,since anti-price-gouging laws are now in effect.
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A) a surplus,where the quantity demanded exceeds the quantity supplied.
B) a shortage,where the quantity demanded exceeds the quantity supplied.
C) a surplus,where the quantity supplied exceeds the quantity demanded.
D) a shortage,where the quantity supplied exceeds the quantity demanded.
E) nothing; the price floor will have no impact on the quantity demanded or the quantity supplied.
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A) $100
B) $45
C) $385
D) $35
E) $11
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A) 240
B) 140
C) 24
D) 1,400
E) 1,600
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A) 600
B) 240
C) 0
D) 3,000
E) 2,400
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A) A rent control law is a price floor law that makes apartments cheaper to rent but discourages property owners from renting out apartments.
B) A rent control law encourages property owners to convert offices and condos into apartments.
C) A rent control law reduces housing shortages.
D) A rent control law encourages landlords to rent out apartments.
E) A rent control law is a price ceiling law that makes apartments cheaper to rent but discourages property owners from renting out apartments.
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A) understand that their action causes a trade-off: giving up fairness to get efficiency.
B) understand that their action will induce a better achievement of the gains from trade.
C) understand that their action is supported by most economists,and hence best for society.
D) might not understand that their action causes confusion in the price signaling mechanism that directs the allocation of resources.
E) might not understand that their action will not get them the votes they seek.
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A) Prices in the legal market in the community with a binding price floor would fall.
B) There would be smaller surpluses in the community with a binding price floor.
C) More consumers would purchase the product in the community without a price floor.
D) The black market in the community with a binding price floor would be larger.
E) Sales of the product in the community with a binding price floor would increase.
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A) because it greatly benefits firms,and they would spend a lot of money to lobby against the law's repeal
B) because it greatly benefits all consumers,who are also voters
C) because it greatly benefits society as a whole,with all consumers able to buy as much as firms produce
D) because it is not difficult to remove; the legal market price or quantity are not affected
E) because it greatly benefits the government,which receives additional tax revenue as a result
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A) It increased the willingness of firms to supply air conditioners when they were out of stock at the stores.
B) It increased consumer demand for air conditioners.
C) It decreased the incentive of individuals to supply the good on the black market.
D) It had no effect on consumers or firms in this situation.
E) It increased the incentive of individuals to supply the good on the black market.
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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.
E) The amount of the surplus will not change.
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As we learned in the chapter,s...View Answer
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A) $1,500
B) $1,550
C) $1,700
D) $1,750
E) $1,800
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The positive consequence would be for th...View Answer
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A) Both the quality and the size of the product will decrease.
B) The quality of the product will increase but the size of the product will decrease.
C) Both the quality and the size of the product will increase.
D) The quality of the product will decrease but the size of the product will increase.
E) Neither the quality nor the size of the product will be affected.
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A) My friend bought the good on the black market because a binding price floor had created a shortage in the legal market and my friend really needed the good.
B) My friend bought the good on the black market because a price ceiling caused the price to be lower on the black market.
C) My friend bought the good on the black market because a nonbinding price floor had created a shortage on the legal market and my friend really needed the good.
D) My friend bought the good on the black market because a binding price floor made the good too expensive to purchase on the legal market and it was cheaper on the black market.
E) My friend bought the good on the black market because a nonbinding price floor made the good too expensive to purchase on the legal market and it was cheaper on the black market.
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A) Yes.A binding price ceiling benefits all buyers because it allows them to obtain the good in the legal market.
B) No.A binding price ceiling benefits only some buyers because not all are able to obtain the good in the legal market.
C) No.A binding price ceiling benefits no buyers because sellers are unwilling to sell any of their products.
D) No.A binding price ceiling benefits only some buyers because,although the price is initially lower,it eventually increases to the equilibrium price.
E) No.A binding price ceiling benefits no buyers because they are unwilling to buy any of the products at a price higher than the equilibrium.
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A) a market surplus.
B) an unwanted market allocation.
C) a market shortage.
D) better organization of resource allocation,resulting in more efficiency.
E) Price floors and price ceilings cannot have an identical outcome.
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