Questions&Answers

=Questions = 1. When is a price ceiling binding?A price ceiling is binding when it is below the equilibrium price. True/ False 2. When does price floor create surplus?A price floor that is binding creates shortage. True/ False 3. What is minimum wage an example of? True/ False 4. What controls the balance of supply and demand in a market. 5. What are the three steps in determining the effect of tax on a market? 6. What determines the size of the tax divided between the sellers and the buyers?
 * short answer
 * short answer

**ANSWERS**
1. When it is lower than the equilibrium price 2. When equilibrium price is greater than the price floor 3. Price floor 4. price of the goods 5. Effect on supply or demand curve, the direction of the shift, and effect on equilibrium. 6. Elasticity