ECON 213 Quiz 6 Liberty University (IN
PROGRESS)
price controls - CORRECT ANSWER ✔✔✔ legal restrictions on how high or low a market price may go
price ceiling - CORRECT ANSWER ✔✔✔ A legal maximum on the price at which a good can be sold
Law of Demand - CORRECT ANSWER ✔✔✔ consumers buy more of a good when its price decreases
and less when its price increases
black market - CORRECT ANSWER ✔✔✔ a market in which goods are sold illegally
nonbinding price ceiling - CORRECT ANSWER ✔✔✔ a price ceiling set at a level above equilibrium price
binding price ceiling - CORRECT ANSWER ✔✔✔ A maximum legal price that is set below the existing
equilibrium price. Because the market equilibrium price is greater than the price ceiling, the ceiling
restricts trade and is said to be binding.
rent control - CORRECT ANSWER ✔✔✔ a price ceiling placed on rent
price gouging laws - CORRECT ANSWER ✔✔✔ place a temporary ceiling on the prices that sellers can
charge during times of emergency
price floor - CORRECT ANSWER ✔✔✔ A legal minimum on the price at which a good can be sold
nonbinding price floor - CORRECT ANSWER ✔✔✔ a price floor set at a level below equilibrium price
minimum wage - CORRECT ANSWER ✔✔✔ a minimum price that an employer can pay a worker for an
hour of labor
binding price floor - CORRECT ANSWER ✔✔✔ A minimum legal price that is set above the existing
equilibrium price. Since the market equilibrium price is lower than the price floor, the floor restricts
trade and is said to be binding.
PROGRESS)
price controls - CORRECT ANSWER ✔✔✔ legal restrictions on how high or low a market price may go
price ceiling - CORRECT ANSWER ✔✔✔ A legal maximum on the price at which a good can be sold
Law of Demand - CORRECT ANSWER ✔✔✔ consumers buy more of a good when its price decreases
and less when its price increases
black market - CORRECT ANSWER ✔✔✔ a market in which goods are sold illegally
nonbinding price ceiling - CORRECT ANSWER ✔✔✔ a price ceiling set at a level above equilibrium price
binding price ceiling - CORRECT ANSWER ✔✔✔ A maximum legal price that is set below the existing
equilibrium price. Because the market equilibrium price is greater than the price ceiling, the ceiling
restricts trade and is said to be binding.
rent control - CORRECT ANSWER ✔✔✔ a price ceiling placed on rent
price gouging laws - CORRECT ANSWER ✔✔✔ place a temporary ceiling on the prices that sellers can
charge during times of emergency
price floor - CORRECT ANSWER ✔✔✔ A legal minimum on the price at which a good can be sold
nonbinding price floor - CORRECT ANSWER ✔✔✔ a price floor set at a level below equilibrium price
minimum wage - CORRECT ANSWER ✔✔✔ a minimum price that an employer can pay a worker for an
hour of labor
binding price floor - CORRECT ANSWER ✔✔✔ A minimum legal price that is set above the existing
equilibrium price. Since the market equilibrium price is lower than the price floor, the floor restricts
trade and is said to be binding.
