Exam 4: Prices: Free,controlled,and Relative

Suppose that the government sets a price ceiling in the market for potatoes at $0.75 per pound of potatoes.If the equilibrium price of potatoes is $1.10,the result of the price ceiling will be a _____________ of potatoes and ____________ exchanges will be made with the price ceiling than would be made in a free market.

-Refer to Exhibit 4-7.The number of unskilled workers who want to work at the minimum wage is

Suppose the government sets a price floor that is above the equilibrium price for a given good.It can be said that at the price floor,

​ ​ -Refer to Exhibit 4-10.Suppose that the government imposes a minimum wage of $7.The minimum wage will result in a ___________ of ________ thousand unskilled workers.

List and describe the two major jobs performed by price.

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers,it follows that the absolute price of a dining room table is

If the price of good X is $100 and the price of good Y is $40,it follows that the relative price of one unit of good Y is ___________ unit(s)of good X.

-Refer to Exhibit 4-3.The maximum (per-unit)amount buyers are willing to pay to purchase Q₁ units is

In the market for a given product,when a price floor is set above the equilibrium price the result will be

-Refer to Exhibit 4-11.Suppose that the government imposes a price floor in the market for good ABC at a price of $7.How many fewer units would be bought and sold at the price floor compared to the number of units that would be bought and sold in a free market?

-Refer to Exhibit 4-1.Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound.If the price of butter rises to $3.90 and the price of margarine rises to $2.20,then the absolute price of butter has _______________ and the relative price of butter has _______________.

-Refer to Exhibit 4-4.Which of the following statements is false?

-Refer to Exhibit 4-8.If the wheat market is in competitive equilibrium the total surplus will equal

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor,then the

If the absolute price of a car is $20,000 and the relative price of a computer is 20 cars,it follows that the absolute price of a car is

-Exhibit 4-2 represents the orange juice market.The horizontal line represents a price ceiling imposed by the government.Which of the following is true?

There is currently a price ceiling in the market for transplanted kidneys,which has helped to create a shortage of transplanted kidneys.

Which of the following would not result from a price ceiling (set below the equilibrium price)?