Exam 4: Supply and Demand: Applications and Extensions

A price floor set above an equilibrium price tends to cause persistent imbalances in the market because

Figure 4-24 -Refer to Figure 4-24. The price that buyers pay after the tax is imposed is

Figure 4-20 -Refer to Figure 4-20. The equilibrium price in the market before the tax is imposed is

Figure 4-14 -Figure 4-14 depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?

An increase in the number of students graduating with a major in psychology would result in

A tax for which the average tax rate remains constant at all levels of income is defined as a

Figure 4-23 -Refer to Figure 4-23. In which market will the majority of the tax burden fall on the buyer?

When a government subsidy is granted to the sellers of a product, buyers can end up capturing some of the benefit because

Rent controls tend to cause persistent imbalances in the market for housing because

The actual burden of a tax is determined primarily by

Use the figure below to answer the following question(s). Figure 4-8 -Refer to Figure 4-8. Which of the following is true?

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

Figure 4-25 -Refer to Figure 4-25. The equilibrium price before the tax is imposed is

If the government wants to generate large revenues from placing a tax on the consumption of a particular good, it should choose a good for which