Price Floor And Ceiling Quiz

How to calculate changes in consumer and producer surplus with price and floor ceilings.

Price floor and ceiling quiz.

Price ceiling is a concept that is often used in economics. Final exam ch. This is usually done to protect buyers and suppliers or manage scarce resources during difficult economic times. Quiz questions will test your knowledge about price ceiling and definitions associated with this economic term.

What is the purpose of setting a price floor and price ceiling. This quiz is incomplete. What does this graph show. Basically the purpose of the price ceiling is to make prohibition for the people who charge high prices from their customers and this protect and prevent them.

Price floor and price ceiling draft. K university grade. 17 questions show answers. Price ceiling is one of the approaches used by the government and the purpose of which is to control the prices and to set a limit for charging high prices for a product.

Terms in this set 7 price floor a price floor is a government set price above equilibrium price it is a tax on consumers and a subsidy to producers. Is the minimum wage a price ceiling or a price floor. Like price ceiling price floor is also a measure of price control imposed by the government. To play this quiz please finish editing it.

This quiz worksheet combination will test your understanding of price ceilings and price floors. Price floor and price ceiling draft. Price floors and ceilings are inherently inefficient and lead to sub optimal consumer and producer surpluses but. Price floors and price ceilings are government imposed minimums and maximums on the price of certain goods or services.

Quiz questions will focus on topics such as binding price ceiling lines and the term given to how. But this is a control or limit on how low a price can be charged for any commodity. It is legal minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price. Preview this quiz on quizizz.

Chapter 4 price ceilings and floors quiz. Exorbitant profits for producers of the good.