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practice test 4 - A shortage is the same thing as scarcity...

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Sheet1 Page 1 A shortage is the same thing as scarcity. results from the imposition of a price floor. results when a price ceiling is imposed above the market-clearing price. results when the amount that suppliers wish to supply exceeds the amount that consumers wish to purchase at a particular p none of the above. Correct Answer: none of the above. A minimum wage that is set below the equilibrium wage Correct Answer: will have no effect on employment. A shortage exists when Correct Answer: the quantity demanded is greater than the quantity supplied. Auction markets usually Correct Answer: find an equilibrium. A price floor is placed in a market at $47 (above the equilibrium price). The equilibrium quantity would be 93 if the equilibrium Correct Answer: At $47, there will be a surplus. A price ceiling Correct Answer: may result in a shortage. A price floor Correct Answer: is a legal limit below which the price cannot fall.
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