Exam 5: Markets in Motion and Price Controls

Exhibit 5-8 Refer to Exhibit 5-8.The graph portrays the market for gasoline for which a ____ has been imposed,and,as a result,a ____ of gasoline occurs.

Exhibit 5-5 Refer to Exhibit 5-5.The movement from ____ to ____ is consistent with a strike by the Basque Shepherds Guild.

Exhibit 5-3 Use the following information about demand and supply schedules to answer the question. Refer to Exhibit 5-3.If D₂ and S₁ represent the demand and supply schedules in a particular market,the equilibrium price and quantity are ____ and ____,respectively.

Ceteris paribus,if the market demand for a product decreases,then equilibrium quantity will (be)____ and equilibrium price will (be)____.

Which of the following would most likely increase the price of chicken,a normal good?

Assuming that the demand and supply of a good have moved in opposite directions,but by the same amount,the new equilibrium would represent:

Ceteris paribus,if the market supply of a product increases,then equilibrium quantity will (be)____ and equilibrium price will (be)____.

If a price floor is not binding,then

A legal maximum on the price at which a good can be sold is called a price

"Rent Control",a form of price control in which the government sets a limit to what apartment owners can charge a tenant,is a mechanism of:

For quantity exchanged to decrease,but the price to rise,there must have been a(n)

If American consumers decided to boycott grapes to protest working conditions of farm workers,everything else being equal,the:

A surplus will result whenever the:

When a demand curve shifts,both the equilibrium price and quantity traded will change in the same direction as a result.

Exhibit 5-7 Refer to Exhibit 5-7.If the government intervenes in the market for milk and sets a price ceiling of $2.00 per gallon,the result is:

Ceteris paribus,if the market supply of a product decreases,then equilibrium quantity will (be)____ and equilibrium price will (be)____.

Price floors get their name from the fact that they represent a minimum price below which the legal price cannot fall.

A price ceiling will be binding only if it is set

A simultaneous increase in demand and decrease in supply would lead to:

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,