A price ceiling is a – legally established minimum

1. A price ceiling is a:A. legally established minimum price that can be charged for a good.B. legally established maximum price that can be charged for a good.C. minimum price that is in fact charged in a competitive market.D. maximum price that is in fact charged in a competitive market.E. maximum price that the good has ever sold for.2. A price floor is a:A. legally established minimum price that can be charged for a good.B. legally established maximum price that can be charged for a good.C. minimum price that is in fact charged in a competitive market.D. maximum price that is in fact charged in a competitive market.E. maximum price that the good has ever sold for.3. A price ceiling creates _____ when it is set _____ the equilibrium price.A. excess demand — belowB. excess demand — aboveC. excess supply — belowD. excess supply — above4. A price floor creates _____ when it is set ______ the equilibrium price.A. excess demand — belowB. excess demand — aboveC. excess supply — belowD. excess supply — above5. A price ceiling usually results in ______ consumer surplus, ______ producer surplus, andA. higher – lower – some deadweight lossB. higher – lower – higher tax revenuesC. lower – higher – some deadweight lossD. lower – higher – higher tax revenuesE. lower – lower – some deadweight loss6. A price floor usually results in ______ consumer surplus, ______ producer surplus, and _______A. higher – lower – some deadweight lossB. higher – lower – higher tax revenuesC. lower – higher – some deadweight lossD. lower – higher – higher tax revenuesE. lower – lower – some deadweight loss7. The wholesale market equilibrium price is 6 cents a pound for raw sugar, and the market quantity sold is 30 million pounds. Which of the following policies would create an excess supply of sugar?A. A price ceiling of 10 cents a poundB. A price floor of 10 cents a poundC. A price ceiling of 3 cents a poundD. A price flor of 3 cents a pound.8. The wholesale market equilibrium price is 6 cents a pound for raw sugar, and the market quantity sold is 30 million pounds. Which of the following policies would create an excess demand for sugar?A. A price ceiling of 10 cents a poundB. A price floor of 10 cents a poundC. A price ceiling of 3 cents a poundD. A price flor of 3 cents a pound.9. If there is excess demand for a product because of price controls, we can be sure that the price control being used is a:A. price floorB. price ceilingC. excise tax on producersD. sales tax on consumersTrue or False Price ceiling is a minimum price that sellers may charge for a good, usually set by government.True or False Price floor is a maximum price below which exchange is not permitted.