Supply, Demand, and Government Policies 1475
137.
Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there
will be
a.
no surplus.
b.
a surplus of 10 units.
c.
a surplus of 15 units.
d.
a surplus of 20 units.
Figure 6-14
138.
Refer to Figure 6-14. If the horizontal line on the graph represents a price ceiling, then the
price ceiling is
a.
binding and creates a shortage of 20 units of the good.
b.
binding and creates a shortage of 40 units of the good.
c.
not binding but creates a shortage of 40 units of the good.
d.
not binding, and there will be no surplus or shortage of the good.
139.
Refer to Figure 6-14. If the horizontal line on the graph represents a price floor, then the price
floor is
a.
binding and creates a shortage of 20 units of the good.
b.
binding and creates a shortage of 40 units of the good.
c.
not binding but creates a shortage of 40 units of the good.
d.
not binding, and there will be no surplus or shortage of the good.
Supply, Demand, and Government Policies 1477
Figure 6-15
140.
Refer to Figure 6-15. For a price ceiling to be binding in this market, it would have to be set at
a.
any price below $3.
b.
a price between $2 and $3.
c.
a price between $3 and $4.
d.
any price above $3.
141.
Refer to Figure 6-15. For a price floor to be binding in this market, it would have to be set at
a.
any price below $3.
b.
a price between $2 and $3.
c.
a price between $3 and $4.
d.
any price above $3.
142.
Refer to Figure 6-15. Suppose a price ceiling of $2 is imposed on this market. As a result,
a.
the quantity of the good supplied decreases by 30 units.
b.
the demand curve shifts to the left so as to now pass through the point (quantity = 30, price =
$2).
c.
buyers’ total expenditure on the good decreases by $75.
d.
buyers’ total expenditure on the good falls by $15.
143.
Refer to Figure 6-15. Suppose a price floor of $4 is imposed on this market. As a result,
a.
buyers’ total expenditure on the good decreases by $15.
b.
the supply curve shifts to the left so as to now pass through the point (quantity = 30, price =
$4).
c.
the quantity demanded of the good decreases by 30 units.
d.
the number of units sold in the market will increase by 15 units.
Figure 6-16
144.
Refer to Figure 6-16. In this market, a minimum wage of $7.25 is
a.
binding and creates a labor shortage.
b.
binding and creates unemployment.
c.
nonbinding and creates a labor shortage.
d.
nonbinding and creates neither a labor shortage nor unemployment.
145.
Refer to Figure 6-16. In this market, a minimum wage of $2.75 is
a.
binding and creates a labor shortage.
b.
binding and creates unemployment.
c.
nonbinding and creates a labor shortage.
d.
nonbinding and creates neither a labor shortage nor unemployment.
146.
Refer to Figure 6-16. In this market, a minimum wage of $7.25 creates a labor
a.
shortage of 2,250 workers.
b.
shortage of 4,500 workers.
c.
surplus of 2,250 workers.
d.
surplus of 4,500 workers.
147.
Refer to Figure 6-16. In this market, a minimum wage of $2.75 creates a labor
a.
shortage of 2,250 workers.
b.
shortage of 4,500 workers.
c.
surplus of 2,250 workers.
d.
neither a labor shortage nor surplus.
1482 Supply, Demand, and Government Policies
Table 6-1
Price
Quantity
Demanded
Quantity
Supplied
$20
2400
0
$30
2000
200
$40
1600
400
$50
1200
600
$60
800
800
$70
400
1000
$80
0
1200
148.
Refer to Table 6-1. Which of the following price ceilings would be binding in this market?
a. $80
b. $70
c. $60
d. $50
149.
Refer to Table 6-1. Which of the following price floors would be binding in this market?
a. $70
b. $60
c. $5
d. $40
150.
Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market.
What will be the size
of the shortage in this market?
a.
0 units
b.
400 units
c.
1200 units
d.
1600 units
151.
Refer to Table 6-1. Suppose the government imposes a price ceiling of $70 on this market.
What will be the size
of the shortage in this market?
a.
0 units
b.
400 units
c.
600 units
d.
1000 units
152.
Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What
will be the size of
the surplus in this market?
a.
0 units
b.
200 units
c.
1800 units
d.
2000 units
153.
Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market.
What will be the size of
the surplus in this market?
a.
0 units
b.
400 units
c.
600 units
d.
1000 units
Table 6-2
Price
Quantity
Supplied
$0
0
$5
50
$10
100
$15
150
$20
200
$25
250
154.
Refer to Table 6-2. A price ceiling set at $5 will
a.
be binding and will result in a shortage of 50 units.
b.
be binding and will result in a shortage of 250 units.
c.
be binding and will result in a shortage of 300 units.
d.
not be binding.
1486 Supply, Demand, and Government Policies
155.
Refer to Table 6-2. A price ceiling set at $20 will
a.
be binding and will result in a shortage of 75 units.
b.
be binding and will result in a shortage of 200 units.
c.
be binding and will result in a shortage of 125 units.
d.
not be binding.
156.
Refer to Table 6-2. A price floor set at $20 will
a.
be binding and will result in a surplus of 75 units.
b.
be binding and will result in a surplus of 125 units.
c.
be binding and will result in a surplus of 200 units.
d.
not be binding.
157.
Refer to Table 6-2. A price floor set at $5 will
a.
be binding and will result in a surplus of 50 units.
b.
be binding and will result in a surplus of 250 units.
c.
be binding and will result in a surplus of 300 units.
d.
not be binding.
158.
Refer to Table 6-2. A price ceiling set at $5 results in
a.
50 units sold.
b.
250 units sold.
c.
300 units sold.
d.
350 units sold.
159.
Refer to Table 6-2. A price floor set at $20 results in
a.
75 units sold.
b.
125 units sold.
c.
200 units sold.
d.
275 units sold.
Table 6-3
The following table contains the demand schedule and supply schedule for a market for a
particular good. Suppose
sellers of the good successfully lobby Congress to impose a price floor
$2 above the equilibrium price in this market.
Price
Quantity
Demanded
Quantity
Supplied
$0
15
0
$1
13
3
$2
11
6
$3
9
9
$4
7
12
$5
5
15
$6
3
18
160.
Refer to Table 6-3. How many units of the good are sold after the imposition of the price
floor?
a.
5
b.
9
c.
10
d.
15
161.
Refer to Table 6-3. Following the imposition of a price floor $2 above the equilibrium price,
irate buyers convince
Congress to repeal the price floor and to impose a price ceiling $1 below
the former price floor. The resulting
market price is
a.
$2.
b.
$3.
c.
$4.
d.
$5.
162.
Refer to Table 6-3. Following the imposition of a price floor $2 above the equilibrium price,
irate buyers convince
Congress to repeal the price floor and to impose a price ceiling $1 below
the former price floor. The resulting
shortage is
a.
0 units.
b.
2 units.
c.
5 units.
d.
7 units.
Table 6-4
The following table contains the demand schedule and supply schedule for a market for a
particular good. Suppose
sellers of the good successfully lobby Congress to impose a price floor
$3 above the equilibrium price in this market.
Price
Quantity
Demanded
Quantity
Supplied
$0
15
0
$1
13
3
$2
11
6
$3
9
9
$4
7
12
$5
5
15
$6
3
18
163.
Refer to Table 6-4. How many units of the good are sold after the imposition of the price
floor?
a.
3
b.
9
c.
15
d.
18
164.
Refer to Table 6-4. Following the imposition of a price floor $3 above the equilibrium price,
irate buyers convince
Congress to repeal the price floor and to impose a price ceiling $1 below
the former price floor. The resulting
market price is
a.
$2.
b.
$3.
c.
$4.
d.
$5.
165.
Refer to Table 6-4. Following the imposition of a price floor $3 above the equilibrium price,
irate buyers convince
Congress to repeal the price floor and to impose a price ceiling $1 below
the former price floor. The resulting
shortage is
a.
0 units.
b.
4 units.
c.
5 units.
d.
10 units.
Table 6-5
Price
Quantity
Demanded
Quantity
Supplied
$0
150
0
$3
120
45
$6
90
90
$9
60
135
$12
30
180
$15
0
225
166.
Refer to Table 6-5. Which of the following price ceilings would be binding in this market?
a.
$3
b.
$6
c.
$9
d.
None of the above price ceilings would be binding.
167.
Refer to Table 6-5. Which of the following price floors would be binding in this market?
a.
$3
b.
$6
c.
$9
d.
None of the above price floors would be binding.