1. Which of the following are true about the
results of a binding price ceiling and rent
control?
1. Long lines
2. Inefficient market
3. Inefficient allocation of resources
4. Discrimination
5. Bribery
6. Rationing based on market prices
7. 1,2,3 only
8. All except 6
9. All of the above
2. Which of the following is true of the free
market?
1. The market rations goods
based on the market price
2. The allocation of resources is
inefficient and personal
3. The allocation of resources is
efficient and impersonal
4. All of the above
5. 1 and 2
6. 1 and 3
3. Which of the following is true about the
results of a binding price floor?
1. Sellers are able to sell all they want at the
market price
2. Sellers who use bias are better able to sell
their goods than those who do not.
3. 1 and 2
4. A. Draw market for ice cream in equilibrium
with a non binding price floor. Label Qe, Pe, PF
B. Price of frozen yogurt decreases.
(show the effect so that the non binding price
floor becomes binding) Label Pe1, Qe1, Qs, Qd
1. Enter answer text...