Prices play a role in a market A. because when prices are in equilibrium, product shortages or surpluses can occur. B. because they distribute scarce goods to those consumers who value them most highly. C. because they help eliminate poverty. D. because they eliminate scarcity. When the government sets a maximum price that can be charged for a good or service, it creates A. a price ceiling. B. a white market. C. a price floor. D. a price support. n the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will. The action of having to purchase the will in order to purchase gas is known as A. a price support. B. the price system. C. a surplus. D. a black market. Rent controls are A. when rents are set below the market clearing level. B. used to generate revenue for the local government. C. used to provide incentives to contractors to build new apartments. D. when rents are set above the market clearing level to aid landlords. The effect of legislation establishing a minimum wage above the market clearing wage is A. a shift of the demand for labor curve. B. higher wages for all workers. C. unemployment. D. a shortage of labor. An import quota will A. limit the amount of a good local producers can make. B. limit the amount of a foreign good that can be brought into the United States. C. lead to a shift of the demand curve. D. leave the equilibrium price unchanged and increase the quantity sold. The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called A. consumer surplus. B. production excess. C. market surplus. D. excess demand. The difference between what producers receive at the market clearing price and the total amount that they would have been willing to accept for the total quantity produced in a market is called A. producer surplus. B. excess demand. C. production excess. D. market surplus