Do all buyers benefit from a binding price ceiling?
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.
Do all buyers benefit from a binding price ceiling?
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.
Related textbook solutions
Related questions
QUESTION 38
You are the president of the United States. In an attempt to make gasoline prices cheaper, you have imposed a binding price ceiling on gas. What would you expect your critics to say?
| a. |
The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. |
|
| b. |
The binding price ceiling will discourage individuals from using their personal automobile to commute to work or school. |
|
| c. |
The binding price ceiling will increase the likelihood that customers obtain needed |
|
| d. |
The binding price ceiling will encourage oil companies to deplete the resource too quickly. |
|
| e. |
The binding price ceiling will cause firms to produce only gasoline of the highest quality. |
1.05000 points
QUESTION 39
If a firm's long-run average total costs increase as it increases its scale of production, the firm is experiencing:
| a. |
increasing returns from specialization. |
|
| b. |
diseconomies of scale. |
|
| c. |
economies of scale. |
|
| d. |
constant returns to scale. |
|
| e. |
diminishing marginal product. |
1.05000 points
QUESTION 40
A(n) __________ in the elasticity of supply or demand in a market for a good that is taxed would tend to __________ tax revenue from that tax.
| a. |
increase; increase |
|
| b. |
increase; have no effect on |
|
| c. |
decrease; have no effect on |
|
| d. |
decrease; decrease |
|
| e. |
increase; decrease |
1.05000 points
QUESTION 41
The costs of a market activity paid for by an individual engaged in the market activity are:
| a. |
external costs. |
|
| b. |
social costs. |
|
| c. |
common costs. |
|
| d. |
free-rider costs. |
|
| e. |
internal costs. |
1.05000 points
QUESTION 42
Assume that the price of rubber increased at the same time that Michael Jordan, arguably the best NBA basketball player of all time, became famous. What do you expect to happen to the equilibrium price and equilibrium quantity of the basketball shoes that are promoted by Michael Jordan?
| a. |
Equilibrium price will go down and equilibrium quantity will be indeterminate. |
|
| b. |
Equilibrium price will go up and equilibrium quantity will go down. |
|
| c. |
Equilibrium price will go up and equilibrium quantity will be indeterminate. |
|
| d. |
Equilibrium price will go down and equilibrium quantity will go up. |
|
| e. |
Equilibrium price will go up and equilibrium quantity will go up. |
1.05000 points
QUESTION 43
The minimum wage law is an example of a:
| a. |
price floor. |
|
| b. |
law that sets the minimum number of hours that an employee must work for wages during the week. |
|
| c. |
law that allows individual employers and employees to make free decisions. |
|
| d. |
law that requires quantity demanded to equal quantity supplied. |
|
| e. |
price ceiling. |
QUESTION 16
Positive externalities exist because:
| a. |
internal benefits are greater than external benefits. |
|
| b. |
internal benefits are greater than social benefits. |
|
| c. |
internal benefits are less than external benefits. |
|
| d. |
external benefits are greater than social benefits. |
|
| e. |
internal benefits are less than social benefits. |
QUESTION 17
What is a black market?
| a. |
It is an illegal market that emerges when binding price ceilings are in place. |
|
| b. |
It is an illegal market that emerges when only binding price ceilings and binding price floors are in place. |
|
| c. |
It is an illegal market that emerges when no price controls are present. |
|
| d. |
It is an illegal market that emerges when binding and nonbinding price controls are in |
|
| e. |
It is an illegal market that emerges when binding price floors are in place. |
QUESTION 18
The personal decisions of consumers and firms are based on:
| a. |
external costs. |
|
| b. |
public-good costs. |
|
| c. |
third-party costs. |
|
| d. |
internal costs. |
|
| e. |
social cost. |
QUESTION 19
When the price is _________ the equilibrium price, we would expect there to be a _________, causing the market to put _________ pressure on the price until it went back to the equilibrium price.
| a. |
below; shortage; downward |
|
| b. |
above; shortage; downward |
|
| c. |
above; surplus; upward |
|
| d. |
above; surplus; downward |
|
| e. |
below; surplus; upward |
