need some help with a few problems...

The wholesale market equilibrium price is 6 cents a pound for raw sugar. Which of the following policies would create an excess supply of sugar?

1)A price ceiling of 8 cents a pound
2)A price floor of 8 cents a pound
3)A price floor of 2 cents a pound
4)A price ceiling of 2 cents a pound


A price ceiling is a:

1)legally established minimum price that can be charged for a good.
2)legally established maximum price that can be charged for a good
3)price that you tend to see in competitive markets
4)maximum price that the producer wants to sell at

A price ceiling usually results in ______ consumer surplus, ______ producer surplus, and _______

1)higher, higher, no deadweight loss
2)higher, lower, some deadweight loss
3)lower, higher, no deadweight loss
4)higher, higher, some deadweight loss

As the result of good news about the profitability of a company:

1)demand increases and supply decreases, thereby increasing the price of the stock
2)demand increases and supply increases thereby increasing the price of the stock
3)demand decreases and supply decreases thereby decreasing the price of the stock
4)demand decreases and supply decreases thereby increasing the price of the stock.


Which of these accurately describes the formation of a bubble

1)A rise in prices creates an expectation of further rising prices, thereby increasing demand and causing prices to rise.
2)A fall in prices creates and expectation of rising prices, thereby increasing demand and returning prices to the original level.
3)A rise in prices increases the quantity supplied.
4)A fall in prices causes a fall in demand leading to an increase in supply and a higher price


THANKS... and in particular DONTRUNAWAY guy might need your expertisee!!

1)
Excess supply means demand isn't high enough at that price point. If the equilibrium is at 6 cents, then a price FLOOR (minimum) at 8 cents a pound would increase supply and reduce demand from equilibrium (thus an excess supply).
2)A price floor of 8 cents a pound

2)
2)legally established maximum price that can be charged for a good

3)
A price ceiling would lead to higher consumer surplus, lower producer surplus, and some deadweight loss, so I would go with the 2nd option
2)higher, lower, some deadweight loss

4)
Good profitability increases demand for the stock. People will also be less willing to sell their stock so supply decreases. Price increases.
1)demand increases and supply decreases, thereby increasing the price of the stock

5) I think it's A, because bubbles are when prices are traded above what they're really worth. None of the other options make sense for this.
1)A rise in prices creates an expectation of further rising prices, thereby increasing demand and causing prices to rise.

This post was edited by Dontrunaway on Dec 5 2014 11:55pm