Question 1

-Refer to the graph above to answer this question.What would be the result if the government imposes a quota of 250 units in this market?

Accepted Answer

A) There would be a shortage of 100 units. 
B) There would be a shortage of 150 units. 
C) There would be a shortage of 200 units. 
D) There would be a shortage of 300 units. 
E) There would be no shortage. 
A) There would be a shortage of 100 units. 
B) There would be a shortage of 150 units. 
C) There would be a shortage of 200 units. 
D) There would be a shortage of 300 units. 
E) There would be no shortage.

Question 2

-Refer to the information above to answer this question.All of the following statements except one are correct.Which is the exception?

Accepted Answer

A) The equilibrium price and quantity are $10 and 70. 
B) At a price of $7,there is a surplus of 60. 
C) At a price of $11,there is a surplus of 20. 
D) At a price of $9,there is a shortage of 20. 
A) The equilibrium price and quantity are $10 and 70. 
B) At a price of $7,there is a surplus of 60. 
C) At a price of $11,there is a surplus of 20. 
D) At a price of $9,there is a shortage of 20.

Question 3

What can we conclude if consumers are forced to wait in long line-ups in order to purchase products such as food and fuel?

Accepted Answer

A) That the price of these items is at equilibrium. 
B) That price is operating effectively as a rationing mechanism. 
C) That producers are producing more than people want. 
D) Producers would be willing to produce more if price were allowed to rise. 
A) That the price of these items is at equilibrium. 
B) That price is operating effectively as a rationing mechanism. 
C) That producers are producing more than people want. 
D) Producers would be willing to produce more if price were allowed to rise.

Question 4

-A price floor,to be effective,must be set below the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 5

-Refer to the graph above to answer this question.What would be the result if an effective price floor is set which is $2 different from the equilibrium price?

Accepted Answer

A) The price would be above equilibrium and a surplus of 60 would be produced. 
B) The price would be below equilibrium and a shortage of 60 would be produced. 
C) The price would be above equilibrium and a shortage of 60 would be produced. 
D) The price would be below equilibrium and a surplus of 60 would be produced. 
A) The price would be above equilibrium and a surplus of 60 would be produced. 
B) The price would be below equilibrium and a shortage of 60 would be produced. 
C) The price would be above equilibrium and a shortage of 60 would be produced. 
D) The price would be below equilibrium and a surplus of 60 would be produced.

Question 6

What is an excise tax? Demonstrate the effect of an excise tax paid by suppliers on equilibrium quantity and price.

Accepted Answer

An excise tax is a tax levied on a speci

Question 7

The data shows the demand and supply for wheat:
quantity of bushels per year (in million)
  
-Refer to the information above to answer this question.What would happen if the government were to establish a price floor of $16 per bushel of wheat?

Accepted Answer

A) The price floor would stay at $16 and there would be no surplus in the market. 
B) The equilibrium price would rise to $16 and there would be shortage in the market. 
C) The quantity demanded would increase to 15 million bushels. 
D) There would be a surplus of 10 million bushels of wheat. 
E) The wheat buyers would have difficulty finding sufficient wheat in the market. 
A) The price floor would stay at $16 and there would be no surplus in the market. 
B) The equilibrium price would rise to $16 and there would be shortage in the market. 
C) The quantity demanded would increase to 15 million bushels. 
D) There would be a surplus of 10 million bushels of wheat. 
E) The wheat buyers would have difficulty finding sufficient wheat in the market.

Question 8

Table 3.1 depicts the market for carrots in the country of Myland.
Table 3.1
   a)What is the present equilibrium price and quantity traded in this market?
b)How much in total are buyers paying for the carrots?
c)Suppose that the government introduces a price floor of $1.60 per kg.How much in total will carrot buyers now be paying?
d)What will be the total amount of surplus?
e)Suppose after the imposition of the price floor,the demand in Myland increases by 45,000 kg.What is the new equilibrium price and quantity traded?

Accepted Answer

a)$1.20 and 60,000 u

Question 9

-Refer to the graph above to answer this question.What is the result if the government establishes a minimum wage of $5 in this market?

Accepted Answer

A) There would be 2,000 unemployed workers. 
B) There would be 3,000 unemployed workers. 
C) Firms would employ 18,000 workers. 
D) Firms would employ 21,000 workers. 
E) It would have no effect on the market. 
A) There would be 2,000 unemployed workers. 
B) There would be 3,000 unemployed workers. 
C) Firms would employ 18,000 workers. 
D) Firms would employ 21,000 workers. 
E) It would have no effect on the market.

Question 10

What is a price ceiling?

Accepted Answer

A) A government regulation to set either a maximum or minimum price for a product. 
B) A method of allocation where producers determine the price of a product. 
C) A government regulation stipulating the maximum price which can be charged for a product. 
D) An agreement between firms stipulating the maximum price that they will sell a product for. 
A) A government regulation to set either a maximum or minimum price for a product. 
B) A method of allocation where producers determine the price of a product. 
C) A government regulation stipulating the maximum price which can be charged for a product. 
D) An agreement between firms stipulating the maximum price that they will sell a product for.

Question 11

Assume the market for wheat is in equilibrium.Now suppose,the government imposes a price floor that is below the original equilibrium price.Explain the economic effects of the price floor?

Accepted Answer

If the government imposes a price floor

Question 12

What is the term for a market where products are bought and sold at a price above the price ceiling?

Accepted Answer

A) Producers' preference. 
B) Rationing. 
C) Illegal market. 
D) Dumping. 
A) Producers' preference. 
B) Rationing. 
C) Illegal market. 
D) Dumping.

Question 13

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $80?

Accepted Answer

A) The producer will sell 20 units. 
B) The producer will sell 70 units. 
C) There will be a surplus of 70 units. 
D) There will be a shortage of 40 units. 
E) None of the choices are correct. 
A) The producer will sell 20 units. 
B) The producer will sell 70 units. 
C) There will be a surplus of 70 units. 
D) There will be a shortage of 40 units. 
E) None of the choices are correct.

Question 14

-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?

Accepted Answer

A) The sellers pay more of the tax than the buyers. 
B) The buyers pay more of the tax than the sellers. 
C) The government's tax revenue falls. 
D) The quantity demanded of the product falls by 37.5%. 
E) The quantity demanded of the product rises by 37.5%. 
A) The sellers pay more of the tax than the buyers. 
B) The buyers pay more of the tax than the sellers. 
C) The government's tax revenue falls. 
D) The quantity demanded of the product falls by 37.5%. 
E) The quantity demanded of the product rises by 37.5%.

Question 15

-"A decade-long economic boom is one reason for the strain.Americans have spent heavily on juice-guzzling appliances,boosting demand for electricity faster than capacity is being added."
Analyze this quote using a supply and demand diagram.Market: electricity.
The diagram:

Accepted Answer

@#IMG-DLM& 
Starting from an initial equilibrium p

Question 16

-Refer to the graph above to answer this question.If the government imposes an effective price ceiling of $4,what will be the illegal market price and quantity traded in the market?

Accepted Answer

A) $5 and 30 units. 
B) $6 and 30 units. 
C) $6 and 35 units. 
D) $6 and 40 units. 
A) $5 and 30 units. 
B) $6 and 30 units. 
C) $6 and 35 units. 
D) $6 and 40 units.

Question 17

Rent control is an example of a:

Accepted Answer

A) Price floor. 
B) Price ceiling. 
C) A market in equilibrium. 
D) Producers' preference. 
A) Price floor. 
B) Price ceiling. 
C) A market in equilibrium. 
D) Producers' preference.

Question 18

-What is a price control? Explain.

Accepted Answer

A price control is a government restrict

Question 19

Rent control is an example of _____.

Accepted Answer

A) an illegal market. 
B) a price ceiling. 
C) rationing. 
D) a price floor. 
A) an illegal market. 
B) a price ceiling. 
C) rationing. 
D) a price floor.

Question 20

What will happen if both the demand for and supply of a product increase simultaneously?

Accepted Answer

A) The effect on the quantity traded is indeterminate. 
B) The quantity traded will increase. 
C) The quantity traded will decrease. 
D) The price will rise. 
A) The effect on the quantity traded is indeterminate. 
B) The quantity traded will increase. 
C) The quantity traded will decrease. 
D) The price will rise.

-Refer to the graph above to answer this question.What would be the result if the government imposes a quota of 250 units in this market?

-Refer to the information above to answer this question.All of the following statements except one are correct.Which is the exception?

What can we conclude if consumers are forced to wait in long line-ups in order to purchase products such as food and fuel?

-A price floor,to be effective,must be set below the equilibrium price.

-Refer to the graph above to answer this question.What would be the result if an effective price floor is set which is $2 different from the equilibrium price?

What is an excise tax? Demonstrate the effect of an excise tax paid by suppliers on equilibrium quantity and price.

The data shows the demand and supply for wheat: quantity of bushels per year (in million) -Refer to the information above to answer this question.What would happen if the government were to establish a price floor of $16 per bushel of wheat?

-Refer to the graph above to answer this question.What is the result if the government establishes a minimum wage of $5 in this market?

What is a price ceiling?

Assume the market for wheat is in equilibrium.Now suppose,the government imposes a price floor that is below the original equilibrium price.Explain the economic effects of the price floor?

What is the term for a market where products are bought and sold at a price above the price ceiling?

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $80?

-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?

-"A decade-long economic boom is one reason for the strain.Americans have spent heavily on juice-guzzling appliances,boosting demand for electricity faster than capacity is being added." Analyze this quote using a supply and demand diagram.Market: electricity. The diagram:

-Refer to the graph above to answer this question.If the government imposes an effective price ceiling of $4,what will be the illegal market price and quantity traded in the market?

Rent control is an example of a:

-What is a price control? Explain.

Rent control is an example of _____.

What will happen if both the demand for and supply of a product increase simultaneously?

The Economic Problem

Demand and Supply: An Introduction

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 3: Demand and Supply: An Elaboration

-Refer to the graph above to answer this question.What would be the result if the government imposes a quota of 250 units in this market?

-Refer to the information above to answer this question.All of the following statements except one are correct.Which is the exception?

What can we conclude if consumers are forced to wait in long line-ups in order to purchase products such as food and fuel?

-A price floor,to be effective,must be set below the equilibrium price.

-Refer to the graph above to answer this question.What would be the result if an effective price floor is set which is $2 different from the equilibrium price?

What is an excise tax? Demonstrate the effect of an excise tax paid by suppliers on equilibrium quantity and price.

The data shows the demand and supply for wheat: quantity of bushels per year (in million) -Refer to the information above to answer this question.What would happen if the government were to establish a price floor of $16 per bushel of wheat?

-Refer to the graph above to answer this question.What is the result if the government establishes a minimum wage of $5 in this market?

What is a price ceiling?

Assume the market for wheat is in equilibrium.Now suppose,the government imposes a price floor that is below the original equilibrium price.Explain the economic effects of the price floor?

What is the term for a market where products are bought and sold at a price above the price ceiling?

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $80?

-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?

-"A decade-long economic boom is one reason for the strain.Americans have spent heavily on juice-guzzling appliances,boosting demand for electricity faster than capacity is being added." Analyze this quote using a supply and demand diagram.Market: electricity. The diagram:

-Refer to the graph above to answer this question.If the government imposes an effective price ceiling of $4,what will be the illegal market price and quantity traded in the market?

Rent control is an example of a:

-What is a price control? Explain.

Rent control is an example of _____.

What will happen if both the demand for and supply of a product increase simultaneously?

The Economic Problem

Demand and Supply: An Introduction

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters