# Suppose you live in new york city and the government

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Chapter 3 / Exercise 6
Macroeconomics
Roger A. Arnold
Expert Verified
80. Suppose you live in New York City and the government has imposed rent ceilings on apartments. You want to rent an apartment from Smith, who says that unless you buy the furniture in the apartment for \$4,000, he cannot rent the apartment to you. The condition of buying the furniture could be considered a. a price ceiling. b. a price floor. c. a tie-in sale. d. something no renter would agree to. e. c and d ANS: C DIF: Moderate
81. Jake is an excellent barber. However, all customers who come to him for a haircut must buy a bottle of shampoo. This type of arrangement is known as DIF: Easy
Exhibit 3-11 75
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Chapter 3 / Exercise 6
Macroeconomics
Roger A. Arnold
Expert Verified
82. Refer to Exhibit 3-11. The number of units exchanged at the price ceiling is DIF: Moderate
83. Refer to Exhibit 3-11. How many fewer units are exchanged because of the price ceiling than ultimately would be exchanged in a free market? DIF: Difficult
84. Refer to Exhibit 3-11. Suppose the good shown is being sold at the \$6 price ceiling. At a quantity of 75 units, what is the maximum per-unit price buyers would be willing to pay for a good "tied" to the good shown in the exhibit? a. \$10 b. \$8 c. \$6 d. \$4 e. none of the above ANS: D DIF: Difficult
85. Refer to Exhibit 3-11. Some buyers will offer sellers \$7 per unit instead of the \$6 price ceiling because DIF: Moderate
86. Which of the following statements is true?
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d. Price ceilings cannot be imposed for longer than a month. ANS: A DIF: Moderate 87. Buyers prefer lower prices to higher prices DIF: Moderate
88. A price floor is a government-mandated a. minimum price below which legal trades cannot be made. b. maximum price above which legal trades cannot be made. c. minimum price at which all units of the good must be legally sold. d. minimum price below which legal trades can be made. ANS: A DIF: Moderate