Exam 5: Using Supply and Demand

Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $2 per pill, what will be the total market expenditures on prescription drugs?

Refer to the following graphs. In the early 1990s, mounds of newspapers and worthless plastic piled up at recycling centers. As the nation's economy continued to grow, increased demand eliminated the mounds and turned them into shortages. In the mid-1990s, as recycling became more popular, the mounds of recycled materials returned. What graph best depicts these events on the market for recycled materials?

Given a downward sloping demand curve, a tax on the supply of a good will result in an increase in equilibrium price that is less than the amount of the tax.

Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables? Price Quantity Supplied Quantity Demanded \ 20 0 40 \ 25 10 40 \ 30 20 40 \ 35 30 40 \ 40 40 40 \ 45 50 40

Honus Wagner, a major league baseball player from 1897 to 1917 and one of the first five men inducted into the Baseball Hall of Fame, had his baseball card pulled from cigarette packs because he wasn't being paid for their distribution. What best describes the effect of his action on the market for his baseball card?

Some years ago, Stuyvesant Town and Peter Cooper Village in Manhattan were sold for redevelopment. These villages had been rent controlled, but now that these neighborhoods are no longer rent controlled, one would expect the:

Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $6 per pill, total expenditures under the third-party payer system will be:

Refer to the following graphs. Americans nationwide have been complying with recycling regulations with unexpected zeal. The effect on the market for recycled paper is best shown by which graph?

Refer to the following graph. Suppose this graph represents the market for cheese. In order to keep the price of cheese at Pf, government must:

Refer to the following graph. If the price is set at Pc:

Refer to the following graph. With a tariff of $10 a blouse on imported silk blouses from China, the revenue the government would collect from the import of silk blouses from China would be:

The Katrina disaster in New Orleans decreased the ability of oil companies to purify crude oil into gasoline. This caused the:

Given the equations for demand and supply: Qd = 48 − 4P and Qs = 4P − 16, respectively, the quantity demanded equals the quantity supplied at a price of:

Which of the following is the best example of an excise tax?

Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:

A price floor causes excess demand, resulting in the need to ration by some means other than price.

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to total expenditures in this market if a $2 co-pay is established compared to a free-market equilibrium?

Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables? Price Quantity Supplied Quantity Demanded \ 0 0 3 \ 1 0 2 \ 2 1 1 \ 3 2 0 \ 4 3 0 \ 5 4 0

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to expenditures by consumers in this market if a $2 co-pay is established compared to a free-market equilibrium?

Refer to the graph shown. A quantity restriction of Q_R will: