In figure 4 15 suppose a price floor is established

236. In Figure 4-15, suppose a price floor is established at $20.00. What is the result?
a. a shortage of 10 units
b. a surplus of 10 units
c. a shortage of 20 units
d. a surplus of 20 units
e. there is no change from the situation that exists at the equilibrium price
ANS: E PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: Supply and demand TOP: The Economics of Price Controls
KEY: Bloom's: Analysis MSC: Graphics Questions
Figure 4-16
237. 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 a
239. 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: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
STA: DISC: Supply and demand TOP: The Economics of Price Controls
KEY: Bloom's: Analysis MSC: Graphics Questions

241. Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,
Figure 4-18