Reference no: EM131238998
1. When the polio vaccine first became available in the United States, the government controlled the price with an effective price ceiling. Production of the vaccine was not sufficient to fill all orders and the government had to regulate its distribution. Had the vaccine been sold without government intervention, the shortage would have been eliminated by price:
A. rising, quantity demanded decreasing, and quantity supplied increasing.
B. rising, demand decreasing, and quantity supplied increasing.
C. falling, demand decreasing, and supply increasing.
D. falling, quantity demanded decreasing, and supply increasing.
2. Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:
A. surplus of oranges as the price ceiling keeps the market from reaching equilibrium.
B. shortage of oranges as the price ceiling keeps the market from reaching equilibrium.
C. lower equilibrium price for oranges as the supply curve for oranges shifts to the right.
D. higher equilibrium price for oranges as the demand curve for oranges shifts to the right.
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: When the polio vaccine first became available in the United States, the government controlled the price with an effective price ceiling. Production of the vaccine was not sufficient to fill all orders and the government had to regulate its distributi..
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