4/16/24, 4:18 PM Price Controls | Quizizz

Worksheets Name

Price Controls
Class
Total questions: 35
Worksheet time: 42mins
Date
Instructor name: Joshua Kiehne

1. When a price ceiling is in place keeping the price below the market price, which is true of the quantity demanded & quantity
supplied?

a) Quantity Demanded is greater b) Quantity Supplied is greater

c) Quantity Demanded equals Quantity supplied

2.

What is the equilibrium QUANTITY in this graph?

a) $1.50 b) $1.00

c) 600 d) 800

3.

At the price of 1.00 there is a

a) surplus of 200 b) shortage of 200

c) shortage of 400 d) surplus of 400

4. An effective price floor must be set above equilibrium, resulting in:

a) limited choices b) a surplus

c) a shortage d) None of the above

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5.

If the government set the price at $700, would that be a price ceiling or floor?

a) Price Floor b) Neither

c) Price Ceiling

6.

If the government set the price at $300, what would be the result?

a) Shortage of 4,000 b) Surplus of 4,000

c) Shortage of 2,000 d) Surplus of 2,000

7.

What would result if the price were set at $1.75

a) $1.75 b) Shortage, Quantity Demanded is greater

c) Surplus, Quantity Supplied is greater d) Quantity Supplied = Quantity Demanded

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8.

Assume an effective price floor is placed on the sale of this product. What is the new price & quantity purchased?

a) P3, Q3 b) P2, Q2

c) P1, Q2 d) P1, Q1

9.

Assume an effective price floor is placed on the sale of this product. What letters correspond to the deadweight loss?

a) ABC b) BD

c) DEF d) CE

10.

If the government creates a price ceiling of $30, which one of the following statements is correct?

a) There is a surplus of 100 b) The quantity supplied = 160

c) There is a shortage of 100 d) The quantity demanded = 60

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11.

If the government creates a price floor of $80, which one of the following statements is correct?

a) The quantity supplied = 180 b) There is a shortage of 140

c) There price floor is ineffective d) The quantity demanded = 60

12.

Suppose the mayor of this city imposes a price ceiling at $5.50. How large is the shortage of rides?

a) 3 million b) 4 million

c) 2 million d) 1 million

13.

Suppose the mayor of this city sets a quota limit of rides at 10 million per year. What is the quota rent?

a) $1.50 b) $0.50

c) $2.00 d) $1.00

14. If an effective rent ceiling is eliminated, which of the following is most likely to occur in the rental housing market?

a) An increase in rents, resulting in an increase in the b) A decrease in rents, resulting in an increase in the
quantity of housing supplied quantity of housing supplied

c) An increase in the demand for housing, resulting in an d) An increase in the demand for housing, resulting in a
increase in the quantity of housing demanded decrease in the quantity of housing supplied

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15.

If there is a price ceiling set at P1, consumer surplus will be represented by the area:

a) P3, A, C, P1 b) A, B, C

c) P2, B, P0 d) P3, B, P2

16.

The diagram depicts demand and supply curves in a city’s rental housing market. If a price ceiling of $1,000 is imposed on
the market, which of the following will occur?

a) The quantity of rental housing demanded will increase. b) The supply curve for housing will shift to the right.

c) The demand curve for housing will shift to the right. d) There will be a surplus of rental housing in the city.

17. When a price ceiling is imposed in a market:

a) A persistent surplus results b) A persistent shortage results

c) Quantity supplied is greater than the quantity demanded d) Sellers of the product are made better off

18. When a price floor is imposed, it has an impact on a market if it is set:

a) Above the equilibrium price because quantity supplied b) Above the equilibrium price because quantity demanded
exceeds quantity demanded exceeds quantity supplied

c) At the equilibrium price d) Below the equilibrium price

19. When a price ceiling is in place keeping the price below the market price, which is true of the quantity demanded & quantity
supplied?

a) Quantity Supplied is greater b) Quantity Demanded is greater

c) Quantity Demanded equals Quantity supplied

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20.

At the price of 1.00 there is a

a) surplus of 400 b) shortage of 400

c) surplus of 200 d) shortage of 200

21. An effective price floor must be set above equilibrium, resulting in:

a) limited choices b) None of the above

c) a shortage d) a surplus

22.

If the government set the price at $700, would that be a price ceiling or floor?

a) Neither b) Price Ceiling

c) Price Floor

23.

If the government set the price at $300, what would be the result?

a) Surplus of 4,000 b) Shortage of 4,000

c) Surplus of 2,000 d) Shortage of 2,000

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24.

If the government creates a price floor of $80, which one of the following statements is correct?

a) The quantity supplied = 180 b) There price floor is ineffective

c) There is a shortage of 140 d) The quantity demanded = 60

25.

If the government creates a price ceiling of $30, which one of the following statements is correct?

a) The quantity demanded = 60 b) There is a surplus of 100

c) The quantity supplied = 160 d) There is a shortage of 100

26.

What would result if the price were set at $1.75

a) $1.75 b) Quantity Supplied = Quantity Demanded

c) Surplus, Quantity Supplied is greater d) Shortage, Quantity Demanded is greater

27. Which of the following is the most likely explanation for the imposition of a minimum price in the market for corn?

a) Buyers of corn, recognizing that the price floor is good for b) Sellers of corn, recognizing that the price floor is good for
them, have pressured policy makers into enacting the them, have pressured policy makers into enacting the
price floor. price floor.

c) Policy makers have studied the effects of the price floor d) Buyers and sellers of corn have agreed that the price
carefully and recognize that the price floor is floor is good for both of them and have therefore
advantageous for society as a whole. pressured policy makers into enacting the price floor.

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28. An effective maximum price will benefit

a) all consumers. b) some producers at the expense of other producers.

c) some consumers at the expense of other consumers. d) all producers.

29. Price ceilings lead to ___________ and price floors lead to ___________.

a) surplus;shortage b) shortage;surplus

30.

Suppose the government sets a price ceiling of $80. How large will the shortage be?

a) 5 million coats b) 4 million coats

c) 2 million coats d) 3 million coats

31. During a crisis such as Hurricane Katrina, governments often make it illegal to raise the price of emergency items like
flashlights and bottled water. In practice, this means that these items get sold on a first-come, first-served basis. If a person
has a flashlight that she values at $5, but its price on the black market is $40, what gains from trade are lost if the
government shuts down the black market?

a) $30 b) $45

c) $35 d) $25

32. If a government decided to impose price controls on gasoline, what could it do to avoid the time wasted waiting in
lines? Though there are several solutions to this problem, only one of the options below is correct.

a) Create gasoline rations. b) Ban black markets for gasoline.

c) Ban lines for gasoline. d) Restrict gasoline consumption to high-value uses.

33. A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor?

a) price floor b) price ceiling

34. A review of the jargon: Is rent control a “price ceiling” or a “price floor?”

a) price floor b) price ceiling

35. Harry is lucky enough to get a rent-controlled apartment for $300 per month. The market rent on such an
apartment is $3,000 per month. Harry himself values the apartment at $2,000 per month, and he’d be quite happy
with a regular, $2,000 per month New York apartment. If he stays in the apartment, how much consumer surplus
does he enjoy?

a) $1700 b) $2000

c) $2400 d) $2100

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