Assume a ceiling price is set above the equilibrium price. The eventual result is a shortage.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2A black market may arise when government imposes a price ceiling.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Assume a ceiling price is set above the equilibrium price. The final result is the equilibrium price.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Using supply and demand analysis, customers will stand in line for gasoline when a price ceiling is in force, even if the price ceiling is at a level higher than the equilibrium price.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5A price ceiling set below the equilibrium price creates a shortage.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6If the supply curve decreases while the demand curve remains unchanged, the equilibrium price would decrease.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7If the demand curve increases while the supply curve remains unchanged, the equilibrium price would decrease.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 8An equilibrium price is unaffected by nonprice factors.
a. True
b. False
Indicate whether the statement is true or false
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