Exam 6: Supply, Demand, and Government Policies

Table 6-4 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 $3 above the equilibrium price in this market. -Refer to Table 6-4.Following the imposition of a price floor $3 above the equilibrium price,irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor.The resulting shortage is

The tax incidence depends on whether the tax is levied on buyers or sellers.

When a tax is imposed on the buyers of a good,the demand curve shifts

Economists generally believe that rent control is

Figure 6-11 -Refer to Figure 6-11.The amount of the tax per unit is

Figure 6-5 -Refer to Figure 6-5.If the government imposes a price ceiling of $2 on this market,then the result is a

The minimum wage,if it is binding,lowers the incomes of

Figure 6-14 -Refer to Figure 6-14.Suppose a tax of $2 per unit is imposed on this market.What will be the new equilibrium quantity in this market?

In the 1970s,long lines at gas stations in the United States were primarily a result of the fact that

A tax on the sellers of coffee will

A tax on buyers decreases the quantity of the good sold in the market.

Unlike minimum wage laws,wage subsidies

Figure 6-4 -Refer to Figure 6-4.For a price ceiling to be binding in this market,it would have to be set at

Figure 6-10 -Refer to Figure 6-10.How much tax revenue does this tax produce for the government?

Figure 6-1 Panel (a)Panel (b) -Refer to Figure 6-1.A binding price ceiling is shown in

The quantity sold in a market will increase if the government

Figure 6-11 -Refer to Figure 6-11.As the figure is drawn,who sends the tax payment to the government?

The U.S.minimum wage according to federal law is scheduled to increase to

If the minimum wage exceeds the equilibrium wage,then

To be binding,a price floor must be set above the equilibrium price.