Question: Questions for Review 1. Does a binding price ceiling cause a shortage or a surplus? Provide an example to support your answer. 2. Does

Questions for Review 1. Does a binding price ceiling cause a shortage or a surplus? Provide an example to support your answer. 2. Does a nonbinding price floor cause a shortage or a surplus? Provide an example to support your answer. 3. Will a surplus or a shortage caused by a price control become smaller or larger over time? Explain. 4. Are price gouging laws an example of a price floor or a price ceiling? 5. What will happen to the market price when a price control is nonbinding? 6. Why do most economists oppose attempts to control prices? Why does the government attempt to control prices anyway in a number of markets?

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