Exam 4: Supply and Demand: Applications and Extensions

How would an increase in the price of paper influence the market for college textbooks?

The benefit of a subsidy will go primarily to buyers when the

Emma works full time during the day as an economist and faces a 90 percent marginal tax rate. If Emma were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes?

How would a decrease in lumber prices influence the home construction market?

Figure 4-20 -Refer to Figure 4-20. The amount of the tax per unit is

If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?

What did Keynes and Hayek believe about government central planning?

If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?

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

Figure 4-17 -Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result,

Figure 4-20 -Refer to Figure 4-20. The price that sellers receive after the tax is imposed is

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

Figure 4-3 -Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?

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

Figure 4-25 -Refer to Figure 4-25. The tax causes a reduction in producer surplus that is represented by area

A legal system that provides secure private property rights and unbiased enforcement of contracts

Use the figure below to answer the following question(s). Figure 4-10 -Refer to Figure 4-11. On the Laffer curve shown, which of the following is true?

Which tax rate measures the percent of your income paid in taxes?

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

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