Exam 4: Demand and Supply Applications

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 is P1, consumer surplus is area

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 most common of all nonprice rationing systems is

If the most someone is willing to pay for an airline ticket to Las Vegas is $300 and the market price of the ticket is $200, then this buyer will get consumer surplus of

The benefit of a price floor to ________ is ________.

If the equilibrium price of gasoline is $3.00 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon of gasoline, which of the following will happen?

Related to the Economics in Practice on page 77: If a hurricane results in the supply of hotel rooms decreasing and the equilibrium price for hotel rooms increases, the demand for hotel rooms ________ and total revenue from the sale of hotel rooms ________.

People scalping tickets for a jazz festival will be successful at selling the tickets for a profit

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

In the short run, nonprice rationing will happen whenever there is excess demand in a market.

Producer surplus is

Related to the Economics in Practice on p. 81: The initial price of $0 for the Shakespeare in the Park tickets is akin to the city of New York ________ the tickets.

For a particular product, an effective price ceiling results in

The difference between current market price and full costs of production for the firm is known as

An example of an ineffective price ceiling would be the government setting the maximum price of wheat at ________ per bushel when the market price is at $5.00 per bushel.

In the short run, it is necessary to nonprice ration a good whenever ________ exists.

A shortage occurs when there is an excess supply in a market.

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. At equilibrium, consumer surplus is area

A U.S. import fee on steel would increase the domestic quantity of steel supplied.

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. Assume that initially there is free trade. If the United States then imposes a $10.00 tax per CD-Rom drive on imported CD-Rom drives