Exam 4: Supply and Demand: Applications and Extensions

The more elastic the supply of a product, the more likely it is that the

A subsidy on a product will generate more actual benefit for consumers (and less for producers) when

A subsidy on a product will generate more actual benefit for producers (and less for consumers) when

Figure 4-21 -Refer to Figure 4-21. How much tax revenue does this tax produce for the government?

Use the figure below to answer the following question(s). Figure 4-10 -Figure 4-10 shows the market for a good before and after an excise tax is imposed. What does the triangular area C represent?

The burden of a tax will fall primarily on sellers when the

If drugs such as marijuana and cocaine were legalized, it would be likely that

Figure 4-18 -Refer to Figure 4-18. In this market, which of the following price controls would be binding?

Suppose that a tax is placed on a particular good. If the sellers end up bearing most of the tax burden, this indicates that the

The average tax rate is defined as

Figure 4-22 -Refer to Figure 4-22. The effective price sellers receive after the tax is imposed is

An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when

The Laffer curve illustrates the relationship between

Use the figure below to answer the following question(s). Figure 4-9 -Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. What does the triangular area abc represent?

A black market is

Other things constant, if a labor union is able to successfully increase the wages of autoworkers, there will be

A subsidy is defined as

A price floor that sets the price of a good above market equilibrium will cause

A new law requiring plumbers to pass strict certification tests that reduce the number of plumbers would

An increase in the number of students attending college would tend to