Exam 4: Markets in Action

Exhibit 4-1 Supply and demand data -In Exhibit 4-1,suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level.Assuming that demand does not change,the new equilibrium price will be:

Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are:

Minimum wage legislation:

Rent control applies to about two-thirds of the private rental housing in New York City.Economic theory suggests that a below-equilibrium price established by rent control:

If the equilibrium price of good X is $4 and a price ceiling is imposed at $5,the result will be a(n):

Ceteris paribus,an increase in the supply of a good causes which of the following?

Externalities are unintended costs or benefits that are imposed on unsuspecting people and that result from:

Exhibit 4-11 Data on supply and demand -In Exhibit 4-11,the equilibrium price per bushel of wheat is:

Price ceilings are imposed if the government believes:

When airplanes take off and land at Logan airport,residents of East Boston complain about the noise.The same planes make the same noise during the trip to Boston from Paris,but there are no ____ for most of the trip because ____.

If the equilibrium price of good X is $5 and a price ceiling is imposed at $4,the result will be a(n):

An externality is an unintended ____ imposed on ____ as a result of the ____.

If the government imposes a price ceiling below the market equilibrium price,then:

An example of a price ceiling would be:

If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption,then the good likely has too many resources devoted to its production.

Suppose that X and Y are substitutes.If the price of Y increases,equilibrium price and quantity for X both rise.

The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because:

A market consequence of a price floor program is that:

Which of the following would generate positive externalities?

Which of the following statements is true of a market?