Exam 4: Demand and Supply Applications

Related to the Economics in Practice on p. 77: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.

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. The United States will import 2 million barrels of oil per day if a ________ per barrel tax is levied on imported oil.

Queuing is a system of nonprice rationing.

In a "black market,"

The total of consumer plus producer surplus is greatest

With an effective price ceiling, quantity demanded exceeds quantity supplied.

When there is overproduction in a market

A price ceiling is

Ration coupons are tickets or coupons that give someone a right to purchase a certain amount of a product each time period such as a month.

When supply is fixed, price is supply determined.

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. At the world price of $15 per CD-Rom drive, the United States imports ________ million CD-Rom drives.

A U.S. import fee on steel would reduce imports and lower the price of U.S. steel products.

The harmful effect of a price floor to ________ is ________.

If the market price of a basketball is $35 and the full cost of producing it is $20, then a basketball producing firm gets producer surplus of

A government-imposed maximum price will have no economic impact if

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 -Refer to Figure 4.3. If the government will not allow retailers to charge more than $0.40 for a pencil, which of the following will happen?

The ________ automatically distributes scarce goods.

A minimum price, set by the government, that sellers may charge for a good is known as

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 -Refer to Figure 4.3. An example of an effective price ceiling would be government setting the price of pencils at

A price floor is