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?

Figure 6-31 -Refer to Figure 6-31. If the government set a price floor at $17, would there be a shortage or surplus, and how large would be the shortage/surplus?

Figure 6-20 -Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

A shortage results when a

Under rent control, bribery is a mechanism to

To say that a price ceiling is binding is to say that the price ceiling

Unlike minimum wage laws, wage subsidies

Figure 6-7 -Refer to Figure 6-7. For a price ceiling to be binding in this market, it would have to be set at

Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the

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

Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Figure 6-36 -Refer to Figure 6-36. If the government places a $2 tax in the market, the seller bears $2 of the tax burden.

The goal of rent control is to help the poor by making housing more affordable.

Price ceilings are typically imposed to benefit buyers.

Rent control policies tend to cause

Figure 6-30 Panel a) Panel b) Panel c) -Refer to Figure 6-30. In which market will the tax burden be most equally divided between buyers and sellers?

A binding minimum wage creates a shortage of labor.

A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve

Figure 6-1 Panel a) Panel b) -Refer to Figure 6-1. The price ceiling shown in panel b)

When government imposes a price ceiling or a price floor on a market,