Pricing Regulations Quiz: Test Your Business Knowledge

📚 Quick Study Guide

• ⚖️ Price Ceiling: A maximum legal price set by the government. It prevents prices from going above a certain level. Often leads to shortages.
• floor: A minimum legal price set by the government. It prevents prices from falling below a certain level. Can lead to surpluses.
• 💰 Price Support: Government assistance in maintaining price levels regardless of supply and demand.
• 📈 Market Equilibrium: The point where supply and demand meet, establishing a stable price. Regulations can disrupt this equilibrium.
• elasticity: Measures how much the quantity demanded or supplied of a good responds to a change in price.
• 🎯 Price Discrimination: Selling the same product at different prices to different customers.
• 📜 Anti-trust Laws: Laws designed to prevent monopolies and promote competition.

🧪 Practice Quiz

1. What is a price ceiling?

   1. A) The ideal price for a product.
   2. B) A minimum legal price set by the government.
   3. C) A maximum legal price set by the government.
   4. D) The average price in the market.

2. What is the likely outcome of a price ceiling set below the equilibrium price?

   1. A) Surplus
   2. B) Equilibrium
   3. C) Shortage
   4. D) No change

3. What is a price floor?

   1. A) The lowest possible price.
   2. B) A maximum legal price set by the government.
   3. C) A minimum legal price set by the government.
   4. D) The average price in the market.

4. What is the likely outcome of a price floor set above the equilibrium price?

   1. A) Shortage
   2. B) Equilibrium
   3. C) Surplus
   4. D) No change

5. What does price elasticity of demand measure?

   1. A) How much the price changes when income changes.
   2. B) How much the quantity demanded changes when price changes.
   3. C) How much the supply changes when demand changes.
   4. D) How much the cost of production changes.

6. What is price discrimination?

   1. A) Selling products below cost.
   2. B) Selling the same product at different prices to different customers.
   3. C) Selling different products at the same price.
   4. D) A form of tax evasion.

7. What is the primary goal of antitrust laws?

   1. A) To protect monopolies.
   2. B) To promote competition.
   3. C) To regulate prices.
   4. D) To control supply.