Suppose a price floor is set by the government above the market ...

[KimWrice]

Suppose a price floor is set by the government above the market equilibrium price. Which of the following will result?
 a. There will be a surplus.
  b. The quantity demanded will exceed the quantity supplied.
  c. The demand curve will shift to the left.
  d. None of these.

Question 2

The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
 a. goods were not subject to price controls.
  b. the government imposed a price ceiling below the equilibrium price.
  c. the government imposed a price ceiling above the equilibrium price.
  d. all of these.

[Melissahxx]

Answer to Question 1

a

Answer to Question 2

b