Exam 6: Government Actions in Markets

-In the above figure, the price paid by the buyer before the tax is ________ per compact disc, and the price paid by the buyer after the tax is ________ per compact disc.

-The above figure shows the apartment rental market in Bigtown. If the market is in equilibrium and then the Bigtown Housing Authority imposes a rent ceiling of $500 per apartment, which of the following would occur?

-The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, what is the maximum black market rent in Appleville?

-In the above figure, a rent ceiling of $300 per month would

-A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the

Why do rent ceilings lead to shortages and black markets?

Imposing a minimum wage that is above the equilibrium wage rate results in

Which of the following statements is true about taxes?

-In the table above, what is the equilibrium wage rate in an unregulated market?

If demand is perfectly elastic, a sales tax is paid by

-In the above figure, a sales tax of $1 per unit imposed on sellers shifts the

Explain why a price floor set below the equilibrium price is ineffective.

-The table gives the demand and supply schedules for fireworks on the Island of Big Bang. In the past, because many deaths have resulted from accidents involving fireworks, the government has banned fireworks and is enforcing the ban. A $5 a firework penalty on buyers of fireworks and a $4 a firework penalty on sellers will reduce the number of fireworks bought to ________ a week and the price paid by buyers will be ________ a firework.

-Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?

A price ceiling can result in which of the following?

-A minimum wage set above the equilibrium wage rate is a price ________ that ________ the quantity of low-skilled labor demanded.

-The above figure shows the market for a prescription drug. What is the equilibrium price of the drug? How many doses are purchased? Suppose the government imposes a price ceiling of $1.50 a dose. How many doses are purchased after the price ceiling is imposed?

A rent ceiling creates a shortage. As a result, there is

The minimum wage in 2008 was $6.55 cents until July 2008 when it was raised to $7.25. If the minimum wage in June was below the equilibrium wage and the increased wage in July was above the equilibrium wage, then

-The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. What is the deadweight loss from this tax?