Business
Business, 20.07.2019 06:00, TYUqnn2077

Which situation is the most likely result of a price ceiling being set below the equilibrium price? a. decreased demand b. a surplus in the market c. a shortage in the market d. a higher equilibrium price?

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Business, 22.06.2019 00:30, johnkings140
Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale
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Business, 20.07.2019 22:20, Knownothing
Which situation is the most likely result of a price ceiling being set below the equilibrium price? a.decreased demand b.a surplus in the market c.a shortage in the market d.a higher equilibrium price?
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Business, 08.10.2019 20:00, Will1119
Match each type of price ceiling to its appropriate descriptions. drag each item on the left to its matching item on the right. note that every item may not have a match, while some items may have more than one match. (a) binding (b) nonbinding (1) the price ceiling prevents supply and demand from clearing the market. (2) the price ceiling does not influence the market. (3) the price ceiling is below the equilibrium price. (4) the price ceiling is above the equilibrium price.
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Business, 10.10.2019 21:00, sandersmakaylaovq5vu
Assume that a price ceiling is imposed and there is no black market in gasoline. compare the economic surplus in this market when there is no price ceiling to when there is a price ceiling. the price ceiling creates a. new surplus equal to the area under the demand curve and above the supply curve for units between the quantity with the price ceiling and the equilibrium quantity. b. a deadweight loss equal to the area under the demand curve and above the supply curve for units up to the quantity with the price ceiling. c. new surplus equal to the area under the demand curve and above the supply curve for units up to the equilibrium quantity. d. a deadweight loss equal to the area under the demand curve and above the supply curve for units between the quantity with the price ceiling and the equilibrium quantity.
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