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Price Control
Price Control
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StudBud Administration
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Price control questions
Flashcards
15 cards
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Questions
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Answers
1
The effect of floor prices
makes producers happy
makes producers worse off
increases consumer surplus
makes consumers happy
2
Community surplus
Benefit to society
Benefit to producers
Benefit to consumers
Dead Weight Loss
3
Shortage
Qs>Qd
Qs<Qd
(Qe,Pe)
P >Pe
4
Surplus
Qs>Qd
supply<demand
Qs<Qd
demand>supply
5
The effect of ceiling prices
makes producers happy
increases the efficiency of markets
reduces the amount supplied
reduces the amount demanded
6
A controlled price
is used only during war
helps consumers
helps producers
is set by a legal authority
7
The forces of supply and demand are equal
at equilibrium
when no shortages exist
when there is a small surplus
when there is a surplus
8
A maximum price is in effect
when there is a shortage
below the equilibrium price
when there is a surplus
above the equilibrium price
9
the incidence of a tax
how the tax burden is shared
the money received by government
how many goods are taxed
depends only on PED
10
A subsidy
helps all citizens
is paid by producers to government
provides finances to producers
provides finances to consumers
11
A unit tax or excise tax
shifts supply to the right
reduces the quantity supplied at every price
is a percentage of price
is a percentage of quanity
12
A ceiling price is the
best way to protect consumers
intended to protect producers
lowest price permitted
highest price permitted by law
13
Consumer surplus
Benefit to consumers
Benefit to producers
Paying more than equilibrium price
Welfare loss
14
Intervention
Price control
All of these
Subsidy
Tax
15
In economics, a "free" market is where
goods are given away free
all stakeholders benefit
open to everyone
Government is not involved
