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Price Controls Quiz

Price Controls: ten practice questions on ceilings, floors, and market balance, with concepts and calculations. Every answer is explained.

Free, with no sign-up.

ByLelfy Editorial Team

For High school students and adults reviewing the topic.

About 12 minutes. 10 questions.

How does it work?

  1. Choose one answer or enter a number in the stated unit, then check it.
  2. Your first submitted answer counts toward the score. There is no timer.

What will you get?

See your first-attempt score and an explanation for every answer.

Question 1A legal price ceiling is set above the competitive equilibrium price. In the standard supply and demand model, what happens?
Question 2An illustrative market has Qd = 100 − 5P and Qs = 5P. Find the equilibrium price.

Answers within 0.01 dollars of the expected value are accepted.

Question 3An illustrative market has Qd = 100 − 5P and Qs = 5P. Find the equilibrium quantity.

Answers within 0.01 units of the expected value are accepted.

Question 4For Qd = 100 − 5P and Qs = 5P, a binding ceiling fixes P at 6 dollars. Find the shortage.

Answers within 0.01 units of the expected value are accepted.

Question 5A legal price floor is set below the competitive equilibrium price. What does the standard model predict?
Question 6For Qd = 100 − 5P and Qs = 5P, a binding floor fixes P at 14 dollars. Find the surplus.

Answers within 0.01 units of the expected value are accepted.

Question 7An illustrative market has Qd = 120 − 4P and Qs = 20 + 6P. Find the equilibrium price.

Answers within 0.01 dollars of the expected value are accepted.

Question 8An illustrative market has Qd = 120 − 4P and Qs = 20 + 6P. Find the equilibrium quantity.

Answers within 0.01 units of the expected value are accepted.

Question 9At a binding price ceiling, quantity demanded exceeds quantity supplied. What does the difference measure?
Question 10Why does this simplified model not tell us which buyers obtain scarce goods under a binding ceiling?

Answer every question to see and share your score.

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