Exam 4: Demand and Supply Applications

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

If a price ceiling is set below the equilibrium price

Goods are allocated in a market system by price rationing.

When supply is ________ or the product is ________, then price is demand determined.

In the short run, it is necessary to ________ a good whenever excess demand exists.

In a "black market," goods are traded at market determined prices.

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. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.

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. Consumer surplus changes by the area [E - C] if price goes from equilibrium to

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. The government setting the price of pencils at $0.40 would be an example of an effective

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, consumer surplus changes by the area

Among the methods of nonprice rationing are

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

Producer surplus describes a situation in which there is excess quantity demanded.