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  Figure 6-4 136. Refer to Figure 6-4. For a price ceiling

Question :   Figure 6-4 136. Refer to Figure 6-4. For a price ceiling

 

Figure 6-4

136. Refer to Figure 6-4. For a price ceiling to be binding in this market, it would have to be set at

a. any price below $6.

b. a price between $3 and $6.

c. a price between $6 and $9.

d. any price above $6.

137. Refer to Figure 6-4. For a price floor to be binding in this market, it would have to be set at

a. any price below $6.

b. a price between $3 and $6.

c. a price between $6 and $9.

d. any price above $6.

138. Refer to Figure 6-4. Which of the following price controls would cause a shortage of 20 units of the good?

a. a price ceiling of $4

b. a price ceiling of $5

c. a price floor of $7

d. a price floor of $8

139. Refer to Figure 6-4. Which of the following price controls would cause a surplus of 20 units of the good?

a. a price ceiling of $4

b. a price ceiling of $5

c. a price floor of $7

d. a price floor of $8

140. Refer to Figure 6-4. Suppose a price ceiling of $5 is imposed on this market. As a result,

a. the quantity of the good supplied decreases by 20 units.

b. the demand curve shifts to the left so as to now pass through the point (quantity = 40, price = $5).

c. buyers’ total expenditure on the good decreases by $100.

d. the price of the good continues to serve as the rationing mechanism.

 

 

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