Exam 6: Supply, Demand, and Government Policies

Figure 6-33 -Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the sellers in this market?

When a tax is placed on the buyers of tennis racquets, the size of the tennis racquet market

Policymakers use taxes

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The per-unit burden of the tax on buyers is

Which of the following is not correct?

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

Table 6-1 -Refer to Table 6-1. Which of the following price ceilings would be binding in this market?

Figure 6-22 -Refer to Figure 6-22. Sellers pay how much of the tax per unit?

When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.

Figure 6-1 Panel (a) Panel (b) -Refer to Figure 6-1. In which panel(s) of the figure would there be a shortage of the good at the price ceiling?

Figure 6-35 -Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units.

If a price floor is not binding, then it will have no effect on the market.

Minimum-wage laws dictate

A price ceiling set below the equilibrium price is binding.

When a payroll tax is enacted, the wage received by workers

Figure 6-29 Suppose the government imposes a $2 on this market. -Refer to Figure 6-29. The buyers will bear a higher share of the tax burden than sellers if the demand is

In the short run, rent control causes the quantity supplied

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market. What will be the size of the shortage in this market?

When a tax is placed on the buyers of cell phones, the size of the cell phone market

If the government removes a binding price floor from a market, then the price paid by buyers will