Exam 5: Supply,demand,and Price: Applications

If a college sets its tuition __________ the equilibrium tuition,then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college.

To an economist,freeway congestion is a sign that the price to drive on the freeway is

Economists perceive a college applicant's grade point average and standardized test scores (such as SAT and ACT scores)to be rationing devices.

The NCAA rule governing the limits on the amount of a scholarship a college can offer an athlete is an effective price floor.

Using supply and demand analysis,explain why there is sometimes a surplus of seats to watch a television show being taped and other times there is a shortage of such seats.Assume that tickets to view the taping of a television show are free of charge.

When universities charge students less than the equilibrium tuition for admission,they have to impose some nonprice-rationing device.

The actions of speculators make the speculators better off,but they necessarily make the rest of society worse off.

If more people join carpools and travel to work together

If the government legalizes the purchase and sale of marijuana,the equilibrium quantity would then _________ and the price would then ________ if the supply of marijuana increased by _______ than the demand for marijuana increased.

The ticket price of zero for the viewing of a television show taping often results in a shortage of tickets which are frequently rationed on a first-come-first-served basis.

The lower the price of medical care in general,the higher the ____________________________ medical care and the ______________________ specific items that make up medical care (such as x-rays).

The demand to attend a certain college is represented by a downward-sloping demand curve.The supply of spots at the college is represented by a vertical supply curve.At the tuition that students are charged,there is a shortage of spots at the college.If the demand to attend the college rises,but the tuition stays constant,it follows that the

Discuss three possible solutions for reducing traffic congestion on freeways.Be sure to explain what effect each would have on the supply and/or demand for freeway space.

When the price of a good rises,the demand for its complements will tend to rise.

If new legislation allowed patients to sue their health-maintenance organization (HMO),we would expect the supply curve for HMO-provided health care to shift to the left and the price of such coverage to rise.

If the purchase and sale of marijuana becomes legalized

Which of the following statements is false?

Exhibit 5-1 -Refer to Exhibit 5-1,which shows supply and demand for freeway space at both 8 A.m.and 11 p.m.Which toll creates equilibrium at 11 p.m.?

Colleges and universities use such things as grade point averages and standardized test scores as

At college X and at college Y,students pay $3,000 less than the equilibrium tuition.If the supply of openings is the same at both colleges,it follows that a shortage of openings will be greater at