Exam 4: Demand and Supply Applications

Related to the Economics in Practice on p. 79: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4 -Refer to Figure 4.4. Assume that initially there is free trade. The price of oil in the United States will increase to $150 per barrel if the United States then imposes ________ tariff per barrel of imported oil.

It is necessary to ration a good whenever ________ exists.

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 -Refer to Figure 4.3. The government setting the price of pencils at $0.50 would be an example of an effective

For a particular product, an effective price ceiling results in

Producer surplus is

When there is overproduction in a market,

Favored customers receive special treatment from dealers during periods of excess demand.

On a graph, consumer surplus is the area above the equilibrium price and below the demand curve.

People scalping tickets for a rock concert can sell their tickets for at least a normal profit

Related to the Economics in Practice on page 79: If a hurricane results in the supply of hotel rooms decreasing and the equilibrium price for hotel rooms increases, the demand for hotel rooms ________ and total revenue from the sale of hotel rooms ________.

An example of an ineffective price ceiling would be the government setting the maximum price of wheat at ________ per bushel when the market price is at $5.00 per bushel.

A U.S. tariff on oil would reduce imports and raise the price of U.S. oil products.

If a price ceiling is set below the equilibrium price,

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. If price is P1, the deadweight loss due to under production is area

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4 -Refer to Figure 4.4. The United States will import 2 million barrels of oil per day if a ________ per barrel tariff is levied on imported oil.

The total of producer and consumer surplus is maximized when there is overproduction.

The ________ automatically distributes scarce goods.

Producer surplus is the difference between the most a person is willing to pay and market price.

The difference between current market price and full costs of production for the firm is known as