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  3. Liberty ECON 213 Quiz 4 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 4 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
    • 1.1 STATUS
      • 1.1.1 Question 7
      • 1.1.2 Question 8
      • 1.1.3 Question 9
      • 1.1.4 Question 10
      • 1.1.5 Question 11
      • 1.1.6 Question 12
      • 1.1.7 Question 13
      • 1.1.8 Question 14
      • 1.1.9 Question 15
      • 1.1.10 Question 16
      • 1.1.11 Question 17
      • 1.1.12 Question 18
      • 1.1.13 Question 19
      • 1.1.14 Question 20

Liberty ECON 213 Quiz 4 Answers Complete Solutions

 

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Question 1

What will happen in a market where a binding price floor is removed?

Question 2

If a good is subject to a binding price ceiling and you purchase it on the black market, what do you expect to happen to the price over time?

Question 3

Imagine you find yourself in a heat wave and your air conditioner has broken. Unable to find a new one at the store because of a price gouging law, you purchase an air conditioner on the black market. What role did the price gouging law have?

Question 4

Use the following information to answer the questions that follow.

Market for used cars:

Demand: Qd = 154,000 – 86 P

Supply: Qs = –100 + 14 P

What would be the quantity supplied if a price floor is set at $100?

Question 5

Why does a surplus exist under a binding price floor?

Question 6

A binding price floor creates a surplus, which means:

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Question 7

Refer to the accompanying figure to answer the questions that follow.

If there is a $180 price ceiling imposed on a textbook, what will be the disequilibrium amount?

Question 8

Mortimer loves sushi. He loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law. Who would be affected by this law and how?

Question 9

Why are binding price ceiling laws passed?

Question 10

Which of the following would be true in a city with rentcontrolled apartments?

Question 11

If you were a politician, why would you find it difficult to remove a binding price ceiling?

Question 12

Use the following information to answer the questions that follow.

Market for used cars:

Demand: Qd = 154,000 – 86 P

Supply: Qs = –100 + 14 P

What would be the equilibrium quantity for used cars?

Question 13

What will happen in a market where a binding price ceiling is removed?

Question 14

As a politician, you would be more inclined to propose an increase in the minimum wage when you believe that the new minimum wage would:

Question 15

Use the following table to answer the questions that follow.

At what price level does the labor market experience its largest shortage?

Question 16

Let’s say that you have a friend who was caught illegally selling a good on the black market. When the judge asks you to describe your friend’s motivation as a seller, which of the following would most likely be your reply?

Question 17

As a seller of a product subject to a binding price floor, you would be better off in which of the following situations?

Question 18

You would expect there to be many customers for a black market good when the opportunity cost of finding the good under a:

Question 19

Refer to the accompanying figure. At the price of the binding price floor, by how much would the quantity supplied change from the market equilibrium?

Question 20

Use the following table to answer the questions that follow.

What is the surplus when the price floor is $0.75 in the market for public transportation?

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