Exam 4: Demand and Supply Applications

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. A nonprice rationing system such as queuing must be used to ration the available supply of pencils if the government will not allow retailers to charge more than ________ for a pencil.

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 the United States eliminates all tariffs on CD-Rom drives, which of the following would occur?

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. The deadweight loss due to underproduction is area [C + F] if price is

The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest

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. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.

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. If a 10-cent-per-apple tax is levied on imported apples, the United States will

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.

Refer to the information provided in Figure 4.2 below to answer the question(s) that follow. Figure 4.2 -Refer to Figure 4.2. The market is initially in equilibrium at the intersection of S₂ and D_, and supply shifts from S_{2 to} S_1. Which of the following statements is true?

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 tariff per CD-Rom drive on imported CD-Rom drives,

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. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.

The price system ultimately determines the allocation of resources among producers.

The most common of all nonprice rationing systems is

Refer to the information provided in Figure 4.2 below to answer the question(s) that follow. Figure 4.2 -Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S₁ to S₂. Which of the following statements is true?

At equilibrium, deadweight loss is zero.

A U.S. tariff on oil would reduce the domestic quantity of oil demanded.

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

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

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?

Deadweight loss is the difference between consumer surplus and producer surplus.

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. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,