A.  A price ceiling set above the equilibrium price has no effects.
B.  A price ceiling set below the equilibrium price creates a shortage, costly search, and a black market.
C.  A price ceiling is inefficient and unfair.
D.  A rent ceiling is an example of a price ceiling.

A.  A price floor set below the equilibrium price has no effects.
B.  A price floor set above the equilibrium price creates a surplus, costly search, and a black market.
C.  A price floor is inefficient and unfair.
D.  A minimum wage is an example of a price floor.

7.1  Explain how a price ceiling works and show how a rent ceiling creates a housing shortage, inefficiency, and unfairness.

7.2  Explain how a price floor works, and show how the minimum wage creates unemployment, inefficiency, and unfairness.

7.1  Explain how a price ceiling works and show how a rent ceiling creates a housing shortage, inefficiency, and unfairness.

A.  A price ceiling set above the equilibrium price has no effects.
B.  A price ceiling set below the equilibrium price creates a shortage, costly search, and a black market.
C.  A price ceiling is inefficient and unfair.
D.  A rent ceiling is an example of a price ceiling.

7.2  Explain how a price floor works, and show how the minimum wage creates unemployment, inefficiency, and unfairness.

A.  A price floor set below the equilibrium price has no effects.
B.  A price floor set above the equilibrium price creates a surplus, costly search, and a black market.
C.  A price floor is inefficient and unfair.
D.  A minimum wage is an example of a price floor.

Take the optional post-study bonus point quizzes on Government Influences on Markets on Saturday following Module 3.

Take the optional pre-study bonus point quizzes on Externalities on Sunday preceding Module 4.