Consider the following demand and supply schedules for some agricultural commodity. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Price } & \begin{array} { l } \text { Quantity } \\ \text { Supplied } \end{array} & \begin{array} { l } \text { Quantity } \\ \text { Demanded } \end{array} \\ \hline \$ 10 & 300 & 1100 \\ \hline \$ 30 & 500 & 900 \\ \hline \$ 50 & 700 & 700 \\ \hline \$ 70 & 900 & 500 \\ \hline \$ 90 & 1100 & 300 \\ \hline \$ 110 & 1300 & 100 \\ \hline \end{array}\\ \text { TABLE 5- } 2 \end{array}\] -Refer to Table 5- 2. Consider the market- clearing equilibrium. If the government then imposes a production quota of 500 units, the price of this commodity will relative to the free- market equilibrium price.

A) fall by $40 B) fall by $20 C) rise by $40 D) remain unchanged E) rise by $20 A) fall by $40 B) fall by $20 C) rise by $40 D) remain unchanged E) rise by $20

Consider the following demand and supply schedules for some agricultural commodity. \[\begin{array}{l} \begin{array} { | l | l | l | } \hline \text { Price } & \begin{array} { l } \text { Quantity } \\ \text { Supplied } \end{array} & \begin{array} { l } \text { Quantity } \\ \text { Demanded } \end{array} \\ \hline \$ 10 & 300 & 1100 \\ \hline \$ 30 & 500 & 900 \\ \hline \$ 50 & 700 & 700 \\ \hline \$ 70 & 900 & 500 \\ \hline \$ 90 & 1100 & 300 \\ \hline \$ 110 & 1300 & 100 \\ \hline \end{array}\\ \text { TABLE 5- } 2 \end{array}\] -Refer to Table 5- 2. Consider the market- clearing equilibrium. If the government then imposes a production quota of 500 units, the deadweight loss that is created is equal to

A) $1 000. B) $5 000. C) $3 000. D) $4 000. E) $2 000. A) $1 000. B) $5 000. C) $3 000. D) $4 000. E) $2 000.

Exam 5: Markets in Action

Concert promoters often set ticket prices below what they expect the market- clearing price to be. They are effectively imposing a and the result is often at a considerably higher price.

(Multiple Choice)

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Question 21

FIGURE 5- 1 -Refer to Figure 5- 1. If the government imposes an administered price at P2, the result will be a

(Multiple Choice)

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Question 22

If government establishes a ceiling on the price of rental accommodation lower than the free- market equilibrium price, then

(Multiple Choice)

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Question 23

FIGURE 5- 1 -Refer to Figure 5- 1. In this market, suppose the government announces that the price must be P3 or lower. This price (P3) is referred to as

(Multiple Choice)

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Question 24

FIGURE 5- 5 -Refer to Figure 5- 5. Suppose this market for gardening services is in a free- market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

(Multiple Choice)

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Question 25

Suppose the free- market equilibrium price for ice time at privately operated hockey arenas is $250 per hour. If the municipal government imposes a price ceiling of $130 per hour, we can expect to see

(Multiple Choice)

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Question 26

For a price floor to be binding, it must be set

(Multiple Choice)

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Question 27

Partial- equilibrium analysis is a legitimate method of analysis if the market being studied

(Multiple Choice)

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Question 28

Consider the Canadian market for barley. Suppose a marketing board sets a production quota which is below the equilibrium quantity. The quota will cause the price of barley to and the total revenue earned by Canadian barley farmers to .

(Multiple Choice)

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Question 29

Consider the following demand and supply schedules for some agricultural commodity. Price Quantity Supplied Quantity Demanded \ 10 300 1100 \ 30 500 900 \ 50 700 700 \ 70 900 500 \ 90 1100 300 \ 110 1300 100 TABLE 5- 2 -Refer to Table 5- 2. Consider the market- clearing equilibrium. If the government then imposes a production quota of 500 units, the price of this commodity will relative to the free- market equilibrium price.

(Multiple Choice)

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Question 30

In a competitive market, a price ceiling set below the free- market equilibrium price will result in

(Multiple Choice)

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Question 31

If a binding price ceiling is in effect and if the demand for the product increases, one consequence would be

(Multiple Choice)

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Question 32

FIGURE 5- 2 -Refer to Figure 5- 2. A price floor set at a price of $1.00 will result in

(Multiple Choice)

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Question 33

Consider the following demand and supply schedules for some agricultural commodity. Price Quantity Supplied Quantity Demanded \ 10 300 1100 \ 30 500 900 \ 50 700 700 \ 70 900 500 \ 90 1100 300 \ 110 1300 100 TABLE 5- 2 -Refer to Table 5- 2. Consider the market- clearing equilibrium. If the government then imposes a production quota of 500 units, the deadweight loss that is created is equal to

(Multiple Choice)

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Question 34

Consider Canada's east coast lobster fishery. Suppose the government sets a production quota which is below the equilibrium quantity. Relative to the free- market equilibrium, we can expect the result to be

(Multiple Choice)

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Question 35

Geoff is willing to pay $13 for a sixth entrance to a mountain bike park. The market price for entrance is $10.50. The bike park is willing to accept $8.75. The total economic surplus generated from Geoff's sixth trip to the bike park is

(Multiple Choice)

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Question 36

A predictable result of the imposition of binding price floors or price ceilings is

(Multiple Choice)

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Question 37

FIGURE 5- 6 -Refer to Figure 5- 6. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a at P1. One result would be .

(Multiple Choice)

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Question 38

The shortages associated with a binding price ceiling will be the smallest when

(Multiple Choice)

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Question 39

At any disequilibrium price, whether controlled or not, the quantity actually exchanged is determined by

(Multiple Choice)

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Question 40

Showing 21 - 40 of 114

Concert promoters often set ticket prices below what they expect the market- clearing price to be. They are effectively imposing a and the result is often at a considerably higher price.

FIGURE 5- 1 -Refer to Figure 5- 1. If the government imposes an administered price at P2, the result will be a

If government establishes a ceiling on the price of rental accommodation lower than the free- market equilibrium price, then

FIGURE 5- 1 -Refer to Figure 5- 1. In this market, suppose the government announces that the price must be P3 or lower. This price (P3) is referred to as

FIGURE 5- 5 -Refer to Figure 5- 5. Suppose this market for gardening services is in a free- market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

Suppose the free- market equilibrium price for ice time at privately operated hockey arenas is $250 per hour. If the municipal government imposes a price ceiling of $130 per hour, we can expect to see

For a price floor to be binding, it must be set

Partial- equilibrium analysis is a legitimate method of analysis if the market being studied

Consider the Canadian market for barley. Suppose a marketing board sets a production quota which is below the equilibrium quantity. The quota will cause the price of barley to and the total revenue earned by Canadian barley farmers to .

In a competitive market, a price ceiling set below the free- market equilibrium price will result in

If a binding price ceiling is in effect and if the demand for the product increases, one consequence would be

FIGURE 5- 2 -Refer to Figure 5- 2. A price floor set at a price of $1.00 will result in

Consider Canada's east coast lobster fishery. Suppose the government sets a production quota which is below the equilibrium quantity. Relative to the free- market equilibrium, we can expect the result to be

Geoff is willing to pay $13 for a sixth entrance to a mountain bike park. The market price for entrance is $10.50. The bike park is willing to accept $8.75. The total economic surplus generated from Geoff's sixth trip to the bike park is

A predictable result of the imposition of binding price floors or price ceilings is

FIGURE 5- 6 -Refer to Figure 5- 6. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a at P1. One result would be .

The shortages associated with a binding price ceiling will be the smallest when

At any disequilibrium price, whether controlled or not, the quantity actually exchanged is determined by

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