Exam 4: Supply and Demand: Applications and Extensions

Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is

Other things constant, an increase in the demand for bicycles will

A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because

Use the figure below to answer the following question(s). Figure 4-7 -Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Imposing the tax causes the equilibrium price of gasoline to increase from

Use the table below to choose the correct answer. The tax schedule shown here is

Figure 4-14 -In Figure 4-14, which of the following is true at the price ceiling, P?

Which of the following generalizations about the benefit of a subsidy is correct?

Figure 4-19 -Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S₁ to S₂, the resulting quantity of gasoline that is bought and sold is

Figure 4-22 -Refer to Figure 4-22. From this tax the government will collect a total of

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

The presence of price controls in a market usually is an indication that

Economic analysis indicates minimum wage legislation has

The actual incidence (or burden) of a tax refers to

When government imposes price controls in a market,

A progressive tax is defined as a tax for which the

Which of the following about minimum wage is true?

Which of the following statements is true?

A price ceiling that sets the price of a good below market equilibrium will cause

If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the

Use the figure below to answer the following question(s). Figure 4-7 -Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?