Fall 2009.244-600.Quiz 2 Answers

Fall 2009.244-600.Quiz 2 Answers - Economics Quiz #2 Name _...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics Quiz #2 Fall 2009 Name __________________________________________ (print name) Time of Class_______ 1.) A market is in equilibrium at a price of $2. If the government sets a legal minimum price at $3, this would be an example of an a. Ineffective price floor b. Effective price ceiling c. Effective price floor. d. Ineffective price ceiling. 2.) At an equilibrium price of $4, the government sets a minimum price of $3. You expect a. there is an effective price floor b. there is an effective price ceiling c. the market price to move toward the equilibrium price of $4 d. the market price to be $3 3.) If the government sets a legal maximum price for a good below the current equilibrium price, a. This is an ineffective price ceiling that causes excess supply (surplus) of the good b. This is an effective price ceiling that causes excess supply (surplus) of the good c. This is an effective price floor that causes excess demand (shortage) of the good d. This is an effective price ceiling that causes excess demand (shortage) of the good
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Fall 2009.244-600.Quiz 2 Answers - Economics Quiz #2 Name _...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online