Question 1

Figure 6-10
  
-Refer to Figure 6-10.What is the share of the tax burden per unit that sellers would pay

Accepted Answer

A) $1.00 
B) $1.50 
C) $2.50 
D) $3.50 
A) $1.00 
B) $1.50 
C) $2.50 
D) $3.50

Question 2

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $40 
A) $10 
B) $15 
C) $20 
D) $40

Question 3

If a price ceiling is below equilibrium price,the quantity demanded will exceed the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 4

Figure 6-12
  
-Refer to Figure 6-12.What are the prices for buyers and sellers after the tax is imposed

Accepted Answer

A) Buyers pay P₀ and sellers receive P₁. 
B) Buyers pay P₂ and sellers receive P₁. 
C) Buyers pay P₂ and sellers receive P₀. 
D) Buyers pay P₁ and sellers receive P₁. 
A) Buyers pay P₀ and sellers receive P₁. 
B) Buyers pay P₂ and sellers receive P₁. 
C) Buyers pay P₂ and sellers receive P₀. 
D) Buyers pay P₁ and sellers receive P₁.

Question 5

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $18 
B) $25 
C) $30 
D) $35 
A) $18 
B) $25 
C) $30 
D) $35

Question 6

Figure 6-6

-Refer to Figure 6-6.Which of the above figures represent a proper price control for the wheat market

Accepted Answer

A) panel (a) 
B) panel (b) 
C) panel (c) 
D) panel (d) 
A) panel (a) 
B) panel (b) 
C) panel (c) 
D) panel (d)

Question 7

How does elasticity affect the burden of a tax
 Justify your answer using supply and demand diagrams.

Accepted Answer

Whichever side of th

Question 8

A government-imposed tax on a market shrinks the size of the market.

Accepted Answer

A) True 
 B)False

Question 9

Why are workers with high skills and much experience not affected by the minimum wage

Accepted Answer

A) They belong to unions. 
B) They are not legally guaranteed the minimum wage. 
C) They are generally self-employed and pay themselves a salary. 
D) Their equilibrium wages are well above the minimum wage. 
A) They belong to unions. 
B) They are not legally guaranteed the minimum wage. 
C) They are generally self-employed and pay themselves a salary. 
D) Their equilibrium wages are well above the minimum wage.

Question 10

What effect will a tax of $0.10 per bar on sellers of Caramelt candy bars have

Accepted Answer

A) The supply curve of Caramelt candy bars bar will shift down by $0.10. 
B) The supply curve of Caramelt candy bars bar will shift up by $0.10. 
C) The demand curve of Caramelt candy bars bar will shift down by $0.10. 
D) The demand curve of Caramelt candy bars bar will shift up by $0.10. 
A) The supply curve of Caramelt candy bars bar will shift down by $0.10. 
B) The supply curve of Caramelt candy bars bar will shift up by $0.10. 
C) The demand curve of Caramelt candy bars bar will shift down by $0.10. 
D) The demand curve of Caramelt candy bars bar will shift up by $0.10.

Question 11

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $15 
B) $20 
C) $40 
D) $50 
A) $15 
B) $20 
C) $40 
D) $50

Question 12

Market demand is given as QD = 30 - P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $9 
B) $10 
C) $11 
D) $12 
A) $9 
B) $10 
C) $11 
D) $12

Question 13

A binding price ceiling is imposed on the market for peaches.At the ceiling price,what will be the quantity demanded of peaches

Accepted Answer

A) greater than the quantity supplied 
B) equal to the quantity supplied 
C) smaller than the quantity supplied 
D) artificially restricted by the price ceiling 
A) greater than the quantity supplied 
B) equal to the quantity supplied 
C) smaller than the quantity supplied 
D) artificially restricted by the price ceiling

Question 14

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $13 
B) $15 
C) $20 
D) $30 
A) $13 
B) $15 
C) $20 
D) $30

Question 15

Over time,what happens to housing shortages caused by rent control

Accepted Answer

A) They increase, because the demand and supply curves for housing are more elastic in the long run. 
B) They increase, because the demand and supply curves for housing are more inelastic in the long run. 
C) They decrease, because the demand and supply curves for housing are more inelastic in the long run. 
D) They decrease, because the demand and supply curves for housing are more elastic in the long run. 
A) They increase, because the demand and supply curves for housing are more elastic in the long run. 
B) They increase, because the demand and supply curves for housing are more inelastic in the long run. 
C) They decrease, because the demand and supply curves for housing are more inelastic in the long run. 
D) They decrease, because the demand and supply curves for housing are more elastic in the long run.

Question 16

If a price ceiling of $2 per litre is imposed on gasoline,but the market equilibrium price is $1.50,the price ceiling is a binding constraint on the market.

Accepted Answer

A) True 
 B)False

Question 17

Market demand is given as QD = 150 - 3P.Market supply is given as QS = 2P + 50.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $10 
B) $20 
C) $23 
D) $26 
A) $10 
B) $20 
C) $23 
D) $26

Question 18

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $30 
A) $10 
B) $15 
C) $20 
D) $30

Question 19

Do price controls help those they are designed to help

Accepted Answer

A) Yes.Price controls always help those they are designed to help. 
B) Yes.Price controls often help those they are designed to help. 
C) No.Price controls often hurt those they are designed to help. 
D) No.Price controls always hurt those they are designed to help. 
A) Yes.Price controls always help those they are designed to help. 
B) Yes.Price controls often help those they are designed to help. 
C) No.Price controls often hurt those they are designed to help. 
D) No.Price controls always hurt those they are designed to help.

Question 20

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $20 
B) $25 
C) $30 
D) $34 
A) $20 
B) $25 
C) $30 
D) $34

Exam 6: Supply, demand, and Government Policies

Figure 6-10 -Refer to Figure 6-10.What is the share of the tax burden per unit that sellers would pay

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

If a price ceiling is below equilibrium price,the quantity demanded will exceed the quantity supplied.

Figure 6-12 -Refer to Figure 6-12.What are the prices for buyers and sellers after the tax is imposed

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price ceiling

Figure 6-6 -Refer to Figure 6-6.Which of the above figures represent a proper price control for the wheat market

How does elasticity affect the burden of a tax Justify your answer using supply and demand diagrams.

A government-imposed tax on a market shrinks the size of the market.

Why are workers with high skills and much experience not affected by the minimum wage

What effect will a tax of $0.10 per bar on sellers of Caramelt candy bars have

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as QD = 30 - P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price ceiling

A binding price ceiling is imposed on the market for peaches.At the ceiling price,what will be the quantity demanded of peaches

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

Over time,what happens to housing shortages caused by rent control

If a price ceiling of $2 per litre is imposed on gasoline,but the market equilibrium price is $1.50,the price ceiling is a binding constraint on the market.

Market demand is given as QD = 150 - 3P.Market supply is given as QS = 2P + 50.Which legally imposed price would constitute a binding price ceiling

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price floor

Do price controls help those they are designed to help

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price floor

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Consumers, producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Market demand is given as Q_D= 200 - 6P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price floor

Market demand is given as Q_D= 100 - P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 200 - 6P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 30 - P.Market supply is given as Q_S= 2P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 100 - P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price floor

Market demand is given as Q_D= 150 - 3P.Market supply is given as Q_S= 2P + 50.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 200 - 6P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price floor

Market demand is given as Q_D= 140 - 5P.Market supply is given as Q_S= 2P.Which legally imposed price would constitute a binding price floor