Exam 5: Price Ceilings and Floors

Which is NOT a result of rent control?

Use the following to answer questions Figure: Supply and Demand 2 -(Figure: Supply and Demand 2)If the government sets the price at $8 in this figure,demanders are willing to pay ______ per unit for ______ units.

In the case of a binding price floor,economists expect the quality level of a good to:

An alternative to rent controls that increases the quantity of housing and targets consumers that need low-cost rental property is:

In the case of a binding price floor,the price paid in the market will be:

Because rent controls on apartments reduce profits:

Because of government price controls,a business must now sell soft-serve ice cream at half its original price.This business might respond by:

Use the following to answer questions Figure: Effects of Price Ceilings -Which statement(s)about price ceilings are TRUE? I.Price ceilings cause quantity demanded to exceed quantity supplied. II.When including time costs and bribes,consumers pay a total price in excess of the price ceiling. III.All else equal,it is more wasteful to allocate goods based on bribes than on waiting time costs.

One benefit of shortages is that they eliminate competition since buyers cannot compete for goods by paying higher prices.

A price ceiling is a minimum price below the market price that can be legally charged.

The minimum wage is an example of a(n):

When price floors are in effect,goods and services:

Use the following to answer questions Figure: Price Ceilings and Consumer Valuation -Figure: Price Ceilings and Lost Consumer Surplus Refer to the figure.The figure measures the consumer surplus associated with a price ceiling,assuming:

Price ceilings create five important effects:

After a hurricane,the prices of many items rise.How BEST might the government help poor people be able to afford to buy goods and services?

Mobile homes are housing units installed on a permanent foundation owned by a landlord.Although a resident owns the home,she rents the foundation from the landlord.In theory,owners of mobile homes can transfer their home to a different foundation if the rent becomes too steep,but uninstalling,transporting,and reinstalling the mobile home is usually prohibitively expensive.This "lock-in" effect encourages state legislatures to create rent controls for mobile home foundations.Which statement is a plausible,unintended consequence of these laws?

Deregulation of the airline markets reduced waste,increased efficiency,and:

When price ceilings are effective,gains from trade are usually lower than if the available goods are allocated to the highest value uses.

A price ceiling:

Rent controls create all of the following EXCEPT: