Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is a price ceiling?
What is a price ceiling?
- A specific amount that buyers or sellers pay on each unit bought/sold
- The price that buyers pay and sellers receive in the market
- A legal minimum on the price of a good or service
- A legal maximum on the price of a good or service (correct)
Which of the following is an example of a price floor?
Which of the following is an example of a price floor?
- Minimum wage (correct)
- Rent control
- Purchasing tax
- Sales tax
How do price ceilings affect market outcomes when they are not binding?
How do price ceilings affect market outcomes when they are not binding?
- They cause shortage in the market
- They increase the equilibrium quantity
- They decrease the equilibrium quantity
- They have no effect on the market outcome (correct)
What do taxes imposed on buyers or sellers affect in a market?
What do taxes imposed on buyers or sellers affect in a market?
Signup and view all the answers
What determines the incidence of a tax?
What determines the incidence of a tax?
Signup and view all the answers
