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标题: Economics: Microeconomic Analysis - Reading 15: Markets in A [打印本页]

作者: mayanfang1 时间: 2008-12-31 10:15 标题: [2009]Session 4: Economics: Microeconomic Analysis - Reading 15: Markets in A

Q6. The effect of a price ceiling set above the equilibrium price is most accurately described by which of the following statements?

A) Quantity demanded will exceed quantity supplied.

B) It will have no effect on equilibrium price and quantity.

C) Quantity supplied will exceed quantity demanded.

Q7. If a price ceiling is above the equilibrium price in a given market, its effect will most likely be:

A) a surplus.

B) a shortage.

C) nothing.

Q8. New legislation setting a price ceiling will most likely cause:

A) a market shortage.

B) a market surplus.

C) a decrease in demand.

作者: mayanfang1 时间: 2008-12-31 10:16

答案和详解如下：

Q6. The effect of a price ceiling set above the equilibrium price is most accurately described by which of the following statements?

A) Quantity demanded will exceed quantity supplied.

B) It will have no effect on equilibrium price and quantity.

C) Quantity supplied will exceed quantity demanded.

Correct answer is B)

If a price ceiling is above the equilibrium price, it will have no effect on price or quantity.

Q7. If a price ceiling is above the equilibrium price in a given market, its effect will most likely be:

A) a surplus.

B) a shortage.

C) nothing.

Correct answer is C)

A ceiling is only effective if it is below the equilibrium price. If it is above the equilibrium price, then it should have no effect. If the ceiling is below the equilibrium price, it will produce a shortage. In such a case, suppliers do not produce as much as consumers wish to buy at the ceiling price.

Q8. New legislation setting a price ceiling will most likely cause:

A) a market shortage.

B) a market surplus.

C) a decrease in demand.

Correct answer is A)

Price ceilings restrict the producer from increasing the selling price. The lower price will stimulate demand by consumers at this lower price. However, since producers will not be able to increase price there is little incentive for them to increase supply. Hence, production and supply will be limited at the price ceiling leading to a market shortage.

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