New_HW_6 - Name _ Homework 6: Chapter 6 Multiple Choice: 1...

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Name __________________ B EC 211 Homework 6: Chapter 6 Multiple Choice: 1 point each Figure 6-2 ____ 1. Refer to Figure 6-2 . If the government imposes a price ceiling of $12 in this market, the result would be a. a surplus of 10. b. a surplus of 20. c. a shortage of 20. d. neither a surplus nor a shortage. Figure 6-4 ____ 2. Refer to Figure 6-4 . Suppose a price floor of $7.00 is imposed. As a result, a. buyers’ total expenditure on the good decreases by $20.00. b. the supply curve will shift to the left so as to now pass through the point (Q = 40, P = $7.00). c. the quantity of the good demanded decreases by 20 units. d. the price of the good continues to serve as the rationing mechanism.
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____ 3. A price floor is not binding if a. the price floor is higher than the equilibrium price of the good. b. the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor. c.
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New_HW_6 - Name _ Homework 6: Chapter 6 Multiple Choice: 1...

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