Exam 6: Supply, demand, and Government Policies

The demand for salt is price inelastic and the supply of salt is price elastic.The demand for caviar is price elastic and the supply of caviar is price inelastic.Suppose that a tax of $1 per kilogram is levied on the sellers of salt and a tax of $1 per kilogram is levied on the buyers of caviar.Who would we expect to have to pay most of these taxes

Figure 6-11 -Refer to Figure 6-11.In which market will the majority of a tax be paid by the buyer

What does the term "tax incidence" refer to

If the equilibrium wage rate is $4 per hour,and the minimum wage is $5.15 per hour,a shortage of labour will exist.

Market demand is given as Q_D = 400 - 2P.Market supply is given as Q_S = 2P.Which legally imposed price would constitute a binding price ceiling

Figure 6-13 -Refer to Figure 6-13.What is the equilibrium price before the tax is imposed

Market demand is given as Q_D = 45 - P.Market supply is given as Q_S = P + 15.Which legally imposed price would constitute a binding price ceiling

When is the tax incidence the same as who ultimately bears the tax

What does a binding price floor cause

What happens when government imposes price ceilings and floors in a market

​In order to raise tax revenue and reduce cigarette sales,the government decided to impose a new alcohol tax on all beer sales.One year after introducing the tax,the government found that the tax was most effective in reducing beer sales among young people but did not have a significant effect on others.What can this information tell you about the demand curves

Which parties determine the supply and the demand for labour

Figure 6-13 -Refer to Figure 6-13.What is the per-unit burden of the tax on buyers

What effect will a tax on sellers of cellphones have on the cell phone market

Under rent control,landlords cease to be responsive to tenants' concerns about the quality of the housing.Why is this

What do minimum-wage laws dictate

Under rent control,how does bribery act as a mechanism

Using the graph shown below,answer the following questions. a.What was the equilibrium price in this market before the tax b.What is the amount of the tax c.How much of the tax will the buyers pay d.How much of the tax will the sellers pay e.How much will the buyer pay for the product after the tax is imposed f.How much will the seller receive after the tax is imposed g.As a result of the tax,what has happened to the level of market activity

Figure 6-5 -Refer to Figure 6-5.Which panel best represents a binding rent control in the short run

Using the equations shown below,answer the following questions. Q_D = 100 - 2P Q_S = -20 + 2P a.What is the equilibrium price and quantity in this market b.Assuming a tax of $10 is imposed on the buyer side,what is the equilibrium price and quantity after the tax c.How much of the tax will the buyers pay d.How much of the tax will the sellers pay e.What is the effective price the buyers pay