Question 1

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

Accepted Answer

A) $5 
B) $8 
C) $10 
D) $13 
A) $5 
B) $8 
C) $10 
D) $13

Question 2

What is the impact of a tax on sellers of BBQs

Accepted Answer

A) It leads sellers to supply a smaller quantity at every price. 
B) It leads buyers to demand a smaller quantity at every price. 
C) It leads sellers to supply a larger quantity at every price. 
D) It leads buyers to demand a larger quantity at every price. 
A) It leads sellers to supply a smaller quantity at every price. 
B) It leads buyers to demand a smaller quantity at every price. 
C) It leads sellers to supply a larger quantity at every price. 
D) It leads buyers to demand a larger quantity at every price.

Question 3

Under rent control,what can tenants expect

Accepted Answer

A) lower rent and higher quality housing 
B) lower rent and lower quality housing 
C) higher rent and higher quality housing 
D) higher rent and lower quality housing 
A) lower rent and higher quality housing 
B) lower rent and lower quality housing 
C) higher rent and higher quality housing 
D) higher rent and lower quality housing

Question 4

Why are apartment owners less responsive to tenants' concerns about housing quality under rent control

Accepted Answer

A) With shortages and waiting lists, apartment owners have an incentive to maintain and improve their property. 
B) Apartment owners know they can never please their tenants. 
C) The law no longer requires apartment owners to maintain their buildings. 
D) Apartment owners can convert their buildings into condos. 
A) With shortages and waiting lists, apartment owners have an incentive to maintain and improve their property. 
B) Apartment owners know they can never please their tenants. 
C) The law no longer requires apartment owners to maintain their buildings. 
D) Apartment owners can convert their buildings into condos.

Question 5

Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) $5 
B) $8 
C) $10 
D) $15 
A) $5 
B) $8 
C) $10 
D) $15

Question 7

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $50 
B) $80 
C) $100 
D) $200 
A) $50 
B) $80 
C) $100 
D) $200

Question 8

Market demand is given as QD = 280 - 4P.Market supply is given as QS = 2P + 40.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $35 
B) $45 
C) $55 
D) $65 
A) $35 
B) $45 
C) $55 
D) $65

Question 9

When is a price floor binding

Accepted Answer

A) when it is higher than the equilibrium market price 
B) when it is lower than the equilibrium market price 
C) when it is equal to the equilibrium market price 
D) when it is set by the government 
A) when it is higher than the equilibrium market price 
B) when it is lower than the equilibrium market price 
C) when it is equal to the equilibrium market price 
D) when it is set by the government

Question 10

Market demand is given as QD = 75 - 2P.Market supply is given as QS = 3P.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $14 
B) $20 
C) $24 
D) $30 
A) $14 
B) $20 
C) $24 
D) $30

Question 11

What results when a tax is placed on the sellers of a product

Accepted Answer

A) The size of the market is reduced. 
B) The price of the product decreases. 
C) The demand for the product falls. 
D) The price of the product falls and the quantity demanded increases. 
A) The size of the market is reduced. 
B) The price of the product decreases. 
C) The demand for the product falls. 
D) The price of the product falls and the quantity demanded increases.

Question 12

Figure 6-3
  
-Refer to Figure 6-3.If the government imposes a binding price ceiling in this market at a price of $5.00,what is the result

Accepted Answer

A) a shortage of 10 units 
B) a shortage of 20 units 
C) a surplus of 10 units 
D) a surplus of 20 units 
A) a shortage of 10 units 
B) a shortage of 20 units 
C) a surplus of 10 units 
D) a surplus of 20 units

Question 13

Assume that the demand and supply curves for electric cars are elastic.If the government imposes a $500 tax on the buyer of each electric car,what can we assume will happen to the price of an electric car

Accepted Answer

A) The equilibrium price of an electric car will decrease by less than $500. 
B) The equilibrium price of an electric car will decrease by exactly $500. 
C) The equilibrium price of an electric car will decrease by more than $500. 
D) The equilibrium price of an electric car will not change since both curves are elastic. 
A) The equilibrium price of an electric car will decrease by less than $500. 
B) The equilibrium price of an electric car will decrease by exactly $500. 
C) The equilibrium price of an electric car will decrease by more than $500. 
D) The equilibrium price of an electric car will not change since both curves are elastic.

Question 14

What effect does a tax on buyers of coffee have on the equilibrium price (for buyers) and quantity

Accepted Answer

A) It reduces the equilibrium price of coffee and increases the equilibrium quantity. 
B) It increases the equilibrium price of coffee and reduces the equilibrium quantity. 
C) It increases the equilibrium price of coffee and increases the equilibrium quantity. 
D) It reduces the equilibrium price of coffee and reduces the equilibrium quantity. 
A) It reduces the equilibrium price of coffee and increases the equilibrium quantity. 
B) It increases the equilibrium price of coffee and reduces the equilibrium quantity. 
C) It increases the equilibrium price of coffee and increases the equilibrium quantity. 
D) It reduces the equilibrium price of coffee and reduces the equilibrium quantity.

Question 15

Suppose that a tax is placed on books.If the seller pays the majority of the tax,what do we know

Accepted Answer

A) The supply curve is more inelastic than the demand curve. 
B) The demand curve is more inelastic than the supply curve. 
C) The government has placed the tax on the seller. 
D) The government has placed the tax on the buyer. 
A) The supply curve is more inelastic than the demand curve. 
B) The demand curve is more inelastic than the supply curve. 
C) The government has placed the tax on the seller. 
D) The government has placed the tax on the buyer.

Question 16

Figure 6-1

-Refer to Figure 6-1.In which panel in the figure shown would there be a shortage for the product

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 17

What is one advantage of rent subsidies over rent control

Accepted Answer

A) Rent subsidies do not lead to housing shortages. 
B) Rent subsidies reduce the demand for housing. 
C) Rent subsidies will not lead to discrimination. 
D) Rent subsidies cause rent prices to be lower. 
A) Rent subsidies do not lead to housing shortages. 
B) Rent subsidies reduce the demand for housing. 
C) Rent subsidies will not lead to discrimination. 
D) Rent subsidies cause rent prices to be lower.

Question 18

Figure 6-9
  
-Refer to Figure 6-9.What is the price buyers will pay after the tax is imposed

Accepted Answer

A) $8.00 
B) $12.00 
C) $14.00 
D) $18.00 
A) $8.00 
B) $12.00 
C) $14.00 
D) $18.00

Question 19

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) $35 
D) $40 
A) $15 
B) $20 
C) $35 
D) $40

Question 20

Figure 6-10
  
-Refer to Figure 6-10.What is the equilibrium price in the market before the tax is imposed

Accepted Answer

A) $1.00 
B) $3.50 
C) $5.00 
D) $6.00 
A) $1.00 
B) $3.50 
C) $5.00 
D) $6.00

Exam 6: Supply, demand, and Government Policies

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

What is the impact of a tax on sellers of BBQs

Under rent control,what can tenants expect

Why are apartment owners less responsive to tenants' concerns about housing quality under rent control

Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them.

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

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price floor

Market demand is given as QD = 280 - 4P.Market supply is given as QS = 2P + 40.Which legally imposed price would constitute a binding price ceiling

When is a price floor binding

Market demand is given as QD = 75 - 2P.Market supply is given as QS = 3P.Which legally imposed price would constitute a binding price ceiling

What results when a tax is placed on the sellers of a product

Figure 6-3 -Refer to Figure 6-3.If the government imposes a binding price ceiling in this market at a price of $5.00,what is the result

Assume that the demand and supply curves for electric cars are elastic.If the government imposes a $500 tax on the buyer of each electric car,what can we assume will happen to the price of an electric car

What effect does a tax on buyers of coffee have on the equilibrium price (for buyers) and quantity

Suppose that a tax is placed on books.If the seller pays the majority of the tax,what do we know

Figure 6-1 -Refer to Figure 6-1.In which panel in the figure shown would there be a shortage for the product

What is one advantage of rent subsidies over rent control

Figure 6-9 -Refer to Figure 6-9.What is the price buyers will pay after the tax is imposed

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

Figure 6-10 -Refer to Figure 6-10.What is the equilibrium price in the market before the tax is imposed

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

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 floor

Market demand is given as Q_D= 250 - 0.5P.Market supply is given as Q_S= 2P.Which legally imposed price would constitute a binding price floor

Market demand is given as Q_D= 280 - 4P.Market supply is given as Q_S= 2P + 40.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 75 - 2P.Market supply is given as Q_S= 3P.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