Econ 224 Quiz4

Econ 224 Quiz4 - Econ 224, Fall 2010 Name: Quiz 4 Date: 1....

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Econ 224, Fall 2010 Name: Quiz 4 Date: 1. To say that a price floor is binding is to say that the price floor a. results in a shortage b. is set below the equilibrium price c. causes quantity supplied to exceed quantity demanded d. all of the above are correct 2. Under rent control, tenants can expect a. lower rent and higher quality housing b. lower rent and lower quality housing c. higher rent and a shortage of rental housing d. higher rent and a surplus of rental housing D S1 price ceiling S2 price of gasoline quantity of gasoline P1 P2 P3 Q1 Q3 Refer to the fig above and answer the questions below:
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When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2, a. the market price will increase to P3 b. a surplus will occur at the new market price of P2 c. the market price will stay at P1 d. a shortage will occur at the new market price of P2 S D D after tax 10 20 30 40 50 60 70 80 quantity 1 2 3 4 5 6 7 8 9 10 price Refer to the fig above and answer the questions below:
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This note was uploaded on 06/03/2011 for the course ECON 224 taught by Professor Ozturk during the Fall '09 term at South Carolina.

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Econ 224 Quiz4 - Econ 224, Fall 2010 Name: Quiz 4 Date: 1....

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