Exam 5: Price Ceilings and Floors

Use the following to answer question Figure: Supply and Demand 3 -In 1972-1973,the swimming pools in California were heated but homes in New Jersey were cold,is an example of a(n):

Price ceilings reduce quality because:

Price floors encourage firms to provide ________ quality.

The shortages that result from imposing price controls:

The minimum wage causes unemployment mainly among poor,unskilled workers.

New housing takes some time to build,so rent control creates larger shortages in the:

During the 1970s,the 11-tier oil production definitions came into play because of firms' attempts to bypass regulations and produce decontrolled oil.

Use the following to answer questions Figure: Labor Market 1 -(Figure: Labor Market 1)Refer to the figure.If there is a price ceiling set at $6,how much shortage or surplus,if any,is there?

An employer has work that can be done in the same time by one high-skilled worker paid $50 an hour or by eight low-skilled workers paid $5 an hour each and the minimum wage is $7.25 an hour.In this scenario,who benefits from the minimum wage,the high-skilled worker or the low-skilled workers? (Hint: Who would you hire for the job?)

The deregulation of the airline industry caused:

Which President ended the price controls on oil?

Use the following to answer questions Figure: Losses from Price Ceilings -At a price ceiling of $1 per loaf of bread,quantity supplied is 99 loaves,which is less than quantity demanded.What must be true for the 100th loaf of bread?

For a price floor to prevent market forces from finding the equilibrium price,it must be set:

Use the following to answer questions Figure: Costs of Price Ceilings -Which would be the least likely result of a price ceiling imposed in the market for gasoline?

Rent controls have five important effects on the market for apartments.Please list and provide an example of each effect.

When the price of gasoline rose to $4 per gallon in the summer of 2008,many people were outraged at how gas companies were "price gouging" individuals,and called for price controls on gasoline.If the government had agreed to legally cap the price of gasoline,would this have lowered the cost to consumers? Explain.

What do price ceilings NOT cause?

The quantity exchanged of a good ______ under a binding price ceiling.

Use the following to answer questions Figure: Price Ceiling -(Figure: Price Ceiling)Refer to the figure.If a price ceiling were set at $12,there would be a:

Price controls instituted by President Nixon in 1971: