Exam 7: Government Actions in Markets

Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000.If the minimum wage is set at $7.50 per hour,then the

A price ceiling is a government regulation that makes it illegal to charge a price

Why do rent ceilings lead to shortages and black markets?

-The demand and supply schedules for pizza are in the table above.If the government sets a maximum legal price of $2 per slice of pizza,then

In a housing market with a rent ceiling set below the equilibrium rent,as time passes the supply of apartments

The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the

New York City,which has had a rent ceiling law for more than sixty years,has many abandoned apartment buildings throughout the city.Which of the following explains this?

The deadweight loss from a rent ceiling below the equilibrium rent is smallest when the supply of housing is

The opportunity cost of an apartment in a rent controlled market is equal to

-The above figure shows the market for biologists.The government decides to set a minimum wage for biologists of $18 per hour.After this minimum wage is in effect,unemployment equals ________ workers.

A price floor is a price

-The above figure shows the domestic market for wheat.Suppose this market is isolated from global competition and the government intervenes by setting a support price of $15 a ton.To keep the price at this level,the government will ________ million tons of wheat.

-The above figure shows the market for DVDs.The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs.After this price ceiling is in effect,producer surplus equals ________.

Agricultural price supports in the United States

-The above figure shows a housing market with a rent ceiling equal to $1,000.In this figure,after taking account of the resources lost in search,what area is equal to the consumer surplus?

If a price ceiling is set above the equilibrium price,then

-The graph shows the market for ski chalets in Aspen.If a rent ceiling is set at $1,900 a week,then the maximum amount charged in the black market is ________ a week.

Assuming that the rent ceiling is strictly enforced so that there is no black market,which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?

Suppose the equilibrium price of cotton is $100 per ton.A price support set at ________ than $100 per ton ________.

-The above figure shows the domestic market for tomatoes.Suppose this market is isolated from global competition and there is a support price set at $16.In this figure,what area equals the deadweight loss?