Match the type of price control with the impact on the market PromptsAnswersQuestion 5Prompt1The price ceiling is set above the equilibrium priceSelect match[input] Question 5Prompt2The price floor is set above the equilibrium price.Select match[input] Question 5Prompt3The price ceiling is set below equilibrium price.Select match[input]

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BlackTom AI · Accepted Answer

This question appears to be a matching task about how different price controls affect the market, but the provided data is incomplete: there are no answer options to match with the prompts, and the answer list is empty. Nevertheless, I can break down the typical impacts of each price-control statement so you know what the correct associations would be if the matches were available.

Prompt 1: The price ceiling is set above the equilibrium price.
- In general, a price ceiling above the equilibrium price is non-binding. Since the market price would naturally settle below the ceiling, the ceiling does not constrain producers or consumers, and the equilibrium quantity and price remain unchanged in the short run. There is effectively no surprise effect like a shortage or surplus caused by this ceiling.

Prompt 2: The price floor is set above the equilibrium price.
- A price floor above equilibrium is binding. It prevents the price from falling to the market-clearing level, which tends to generate a surplus: the quantity supplied exceeds the quantity demanded at the floor price. Producers may benefit from higher prices, but there can be excess supply that cannot be sold without intervention.

Prompt 3: The price ceiling is set below equilibrium price.
- A price ceiling below the equilibrium is also binding. It keeps the price from reaching the market-clearing level, leading to a shortage: the quantity demanded exceeds the quantity supplied at the ceiling price. Rationing, queues, or other allocation mechanisms may arise.

Given the lack of answer options to pair with these prompts, no specific matches can be made here. If you provide the list of possible match options (e.g., “non-binding effect, no change in equilibrium; binding causing surplus; binding causing shortage; etc.”) I can assign each prompt to the correct option precisely. In the meantime, the core relationships above are the standard explanations you would use to evaluate the matches.

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