Exam 6: Supply, Demand, and Government Policies

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. -Refer to Table 6-3.How many units of the good are sold after the imposition of the price floor?

The federal government uses the revenue from the FICA (Federal Insurance Contribution Act)tax to pay for

When a tax is placed on the buyers of lemonade,

The demand for salt is inelastic and the supply of salt is elastic.The demand for caviar is elastic and the supply of caviar is inelastic.Suppose that a tax of $1 per pound is levied on the sellers of salt and a tax of $1 per pound is levied on the buyers of caviar.We would expect that most of the burden of these taxes will fall on

Workers,rather than firms,bear most of the burden of the payroll tax.

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

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

Figure 6-9 -Refer to Figure 6-9.How much tax revenue does this tax generate for the government?

Figure 6-9 -Refer to Figure 6-9.As the figure is drawn,who sends the tax payment to the government?

Figure 6-8 -Refer to Figure 6-8.When the price ceiling applies in this market and the supply curve for gasoline shifts from S₁ to S₂,

A price floor is binding when it is set

Which of the following is correct?

A tax on the buyers of coffee will

If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good,then the price paid by buyers will

Figure 6-6 -Refer to Figure 6-6.Which of the following statements is correct?

Figure 6-9 -Refer to Figure 6-9.The burden of the tax on buyers is

Under rent control,bribery is a mechanism to

Figure 6-15 -Refer to Figure 6-15.Suppose a tax of $5 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Figure 6-13 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-13.The per-unit burden of the tax on sellers is

If the government levies a $500 tax per car on buyers of cars,then the price received by sellers of cars would