Price Ceiling and Floors

Price ceiling is located above the equilibrium price.

• True

• False

Price ceiling is a legal maximum price for a product.

• True

• False

If the Market price is $50,, which of the following is True of Quantity Supplied and Quantity Demanded

• quantity demanded = 120

• quantity supplied = 120

• quantity demanded = 120 & quantity supplied =120

• quantity demanded = quantity supplied

Which of the following is an argument supporting an increase to the minimum wage?

• 98.5% of workers earn higher than minimum wage.

• Wages have not kept pace with increases in worker productivity.

• There will be fewer jobs available for low-skilled workers.

• It may increase the cost of bringing goods and services to market.

the lowest legal price that can be paid for a product

• price ceiling

• price floor

• target price

If the government creates a price ceiling of $30, which one of the following statements is correct?

• The quantity demanded = 60
• The quantity supplied = 160
• There is a surplus of 100
• There is a shortage of 100

If the government set the price at $700, would that be a price ceiling or floor?

• Price Ceiling
• Price Floor 
• Neither

What would result if the price were set at $1.75

• Surplus, Quantity Supplied is greater

• Shortage, Quantity Demanded is greater

• Quantity Supplied = Quantity Demanded

• $1.75

A _______ _______ is an unincorporated business that has just one owner.

• sole proprietorship

• oligopoly

• partnership

• monopolistic competition

An ___________ is when a few companies have significant control over a given market.

• partnership

• oligopoly

• monopoly

• revenue