If the Equilibrium Price for Some Product Is $1000,a Price

question 10

Multiple Choice

If the equilibrium price for some product is $1000,a price ceiling of $1200 will result in

• A)the same general effects as a price floor of $1200.
• B)the same general effects as an administered price of $1200.
• C)the same general effects as a price ceiling of $600.
• D)massive surpluses of the good.
• E)no effects because the price ceiling is not binding at that price.

---

Definitions:

Standard Deduction

A fixed amount deducted from income before income tax is applied, reducing taxable income and available to all taxpayers who do not itemize deductions.

Married Filing Jointly

A tax filing status for married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Single Taxpayer

A filing status for unmarried individuals that allows them to report their income and deductions on their federal tax return.

Wages

Compensation received by employees for services performed, usually based on hours worked or amount of work done.