236.In Figure 4-15, suppose a price floor is established at $20.00. What is the result?a.a shortage of 10 unitsb.a surplus of 10 unitsc.a shortage of 20 unitsd.a surplus of 20 unitse.there is no change from the situation that exists at the equilibrium priceANS:EPTS:1DIF:ModerateNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:The Economics of Price ControlsKEY:Bloom's: AnalysisMSC:Graphics QuestionsFigure 4-16237.Refer to Figure 4-16. Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region. If a living wage of $10 per hour is established in the market pictured here, we would expect
238.Refer to Figure 4-17. If the government imposes a price ceiling in this market at a price of $5.00, the result would be a239.Refer to Figure 4-17. Which of the following price controls would cause a shortage of 10 units of the good?240.Refer to Figure 4-17. 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.ANS:APTS:1DIF:ModerateNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:The Economics of Price ControlsKEY:Bloom's: AnalysisMSC:Graphics Questions
241.Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,Figure 4-18
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