Exam 4: Demand and Supply Applications

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1 -Refer to Figure 4.1. At the price of ________ cents per apple the United States imports 6 million apples per day.

Related to the Economics in Practice on p. 77: If the supply of generators increases and the demand for generators increases, the equilibrium price for generators ________ and the equilibrium quantity of generators ________.

The total of producer and consumer surplus is maximized when there is underproduction.

The market will be in equilibrium if ________ is set ________ the equilibrium price.

Refer to the information provided in Figure 4.5 below to answer the question(s) that follow. Figure 4.5 -Refer to Figure 4.5. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives if the United States imposed ________ tax per CD-Rom drive on imported CD-Rom drives.

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4 -Refer to Figure 4.4. If the United States levies no taxes on imported oil, which of the following would occur?

A U.S. import fee on oil would reduce the domestic quantity of oil supplied.

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1 -Refer to Figure 4.1. At the world price of 30 cents per apple the United States imports ________ million apples per day.

Producer surplus is the difference between the most a person is willing to pay and market price.

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4 -Refer to Figure 4.4. If a $25 per barrel tax is levied on imported oil, the United States will

If a price floor is set below the equilibrium price

Refer to the information provided in Figure 4.5 below to answer the question(s) that follow. Figure 4.5 -Refer to Figure 4.5. If a $10.00 per CD-Rom drive tax is levied on imported CD-Rom drives, the United States will

It is necessary to ration a good whenever ________ exists.

With price rationing, those who are both able and willing to pay for a product get it.

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. If price goes from equilibrium to P1, producer surplus changes by the area

An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.

Related to the Economics in Practice on page 81: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?

The government imposes a maximum price on apartments that is below the equilibrium price. You accurately predict that

The type of nonprice rationing that most closely approaches the market outcome is

Refer to the information provided in Figure 4.4 below to answer the question(s) that follow. Figure 4.4 -Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil, the tax revenue generated will equal