Exam 6: Supply, Demand, and Government Policies

Figure 6-32 -Refer to Figure 6-32. If the government set a price ceiling at $50, would there be a shortage or surplus, and how large would be the shortage/surplus?

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

The housing shortages caused by rent control are larger in the long run than in the short run because both the supply of housing and the demand for housing are more elastic in the long run.

Workers with high skills and much experience are not typically affected by the minimum wage.

Figure 6-10 -Refer to Figure 6-10. A price ceiling set at

In response to a shortage caused by the imposition of a binding price ceiling on a market,

The tax incidence

Figure 6-12 -Refer to Figure 6-12. When the price ceiling applies in this market, and the supply curve for gasoline shifts from S1 to S2, the resulting quantity of gasoline that is bought and sold is

Figure 6-23 -Refer to Figure 6-23. The price paid by buyers after the tax is imposed is

Table 6-6 -Refer to Table 6-6. If the government set a price ceiling at $4, would there be a shortage or surplus, and how large would be the shortage/surplus?

Figure 6-34 -Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, who will bear the greater burden of the tax - the buyers, the sellers, or will the burden be shared equally?

An alternative to rent-control laws that would not reduce the quantity of housing supplied is

After a binding price floor becomes effective, a

Figure 6-25 -Refer to Figure 6-25. The burden of the tax on sellers is

Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower.

A tax on golf clubs will cause buyers of golf clubs to pay a higher price, sellers of golf clubs to receive a lower price, and fewer golf clubs to be sold.

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

If the government levies a $0.25 tax per MP3 music file downloaded on buyers of MP3 music files, then the price received by sellers of MP3 music files would

A nonbinding price floor (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price.

In the housing market, supply and demand are