Exam 6: Supply, Demand, and Government Policies

If the equilibrium price of an airline ticket is $500 and the government imposes a price floor of $400 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.

A tax of $1 on buyers shifts the demand curve downward by exactly $1.

To say that a price floor is binding is to say that the price floor

Figure 6-18 -Refer to Figure 6-18. As the figure is drawn, who sends the tax payment to the government?

Table 6-3 The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market. price Quantity Denanded Quantity Suppplied \ 0 15 0 \ 1 13 3 \ 2 11 6 \ 3 9 9 \ 4 7 12 \ 5 5 15 \ 6 3 18 -Refer to Table 6-3. How many units of the good are sold after the imposition of the price floor?

Figure 6-26 -Refer to Figure 6-26. A price ceiling set at $30 would create a shortage of 20 units.

If a tax is levied on the sellers of a product, then there will be a(n)

When a binding price floor is imposed on a market to benefit sellers,

A price ceiling is

The tax incidence

Which of the following is not an example of a public policy?

Congress intended that

A tax imposed on the sellers of a good will lower the

Who bears the majority of a tax burden depends on the relative elasticity of supply and demand.

The imposition of a binding price ceiling on a market causes quantity demanded to be

Figure 6-20 -Refer to Figure 6-20. The per-unit burden of the tax on buyers of the good is

Whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes.

Table 6-1 Price Quantity Denanded Quantity Sugplied \ [12 12 0 \ 1 10 2 \ 2 8 4 \ 3 6 6 \ 4 4 8 \ 5 2 10 \ 6 0 12 -Refer to Table 6-1. Suppose the government imposes a price floor of $5 on this market. What will be the size of the surplus in this market?

Figure 6-20 -Refer to Figure 6-20. Suppose sellers, rather than buyers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the tax on buyers, the tax on sellers would result in

The goal of the minimum wage is to ensure workers a minimally adequate standard of living.