Micro Unit 2.7 HW: Price Controls (Agree/Disagree)

Last updated 10 months ago

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Select Agree or Disagree for each statement made about price controls and other related topics.

	Agree	Disagree
A price floor in a competitive market will result in persistent shortages of a product.
A ceiling price in a competitive market will result in persistent surpluses of a product.
The higher the price floor is above the equilibrium price, the greater will be the surplus output.
The further a ceiling price is below the equilibrium price, the smaller will be the shortage of the product.
Price ceilings can lead to shadow markets as consumers and suppliers try to circumvent shortages.
Price floors can benefit producers but often lead to decreased demand for the product.
Implementing a price ceiling will always result in increased consumer satisfaction.
Price floors are beneficial for all producers because they guarantee higher income.