Suppose the Government Sets a Particular Price in the Market
Suppose the government sets a particular price in the market for gold,which results in an excess supply.In this situation,
A)the market is in equilibrium.
B)the market is in disequilibrium.
C)there are unsuccessful buyers.
D)the gold market has not reached the point of saturation.
E)no gold will be exchanged.
A minimum permissible price established by the government is called
A)the equilibrium price.
B)the margin price.
C)a price ceiling.
D)a price floor.
E)the fair price.
If the government fixes the price of good X above its free-market equilibrium level,we should expect
A)a surplus of good X to occur.
B)a shortage of good X to occur.
C)an excess demand for good X.
D)a black market to arise for good X.
E)a new free-market equilibrium price to be established.
A legally imposed upper limit on a price is called
A)a price floor.
B)a price support.
C)an excise price.
D)a price ceiling.
E)a government price.