Exam 5: Supply Demand and Price Applications

The existence of a third party in the medical care market separates the buying of medical care from the paying for medical care.

Suppose that more people want to move from Miami to Phoenix than want to move from Phoenix to Miami. It is likely that U-Haul rates will be relatively ______________from Phoenix to Miami since the ___________________.

When the government _____________ mortgage lending standards, the indirect result is likely to be _____________ home prices.

Exhibit 5-5 -Refer to Exhibit 5-5. Based upon the information provided in this graph, the supply of aisle seats is __________ the supply of middle seats, and the demand for aisle seats is _______________ the demand for middle seats.

The space on the freeway is fixed at any instant of time. A supply curve that shows this is

The actions of speculators make the speculators better off, but they necessarily make the rest of society worse off.

Exhibit 5-5 -Refer to Exhibit 5-5. If the airline charges a price that is higher than P₂, the result will be a ________________ of middle seats and a ____________ of aisle seats.

Exhibit 5-2 -Refer to Exhibit 5-2. If the tuition is set at $40, there will need to be some kind of non-price rationing device used for

The higher the price of medical care in general, the lower the __________________ medical care and the ________________ specific items that make up medical care (such as, x-rays).

Exhibit 5-1 -Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. At P = $0, there is a ________ of freeway space at 8 a.m. and ________ at 11 p.m.

As the price of good Z falls, the quantity demanded of good Z rises, but the quantity supplied of good Z does not change. Based upon this information we can conclude that the demand curve for good Z is ________________ and the supply curve for good Z is ________________.

At college X and at college Y, students pay $3,000 less than the equilibrium tuition. If the supply of openings is the same at both colleges, it follows that a shortage of openings will be greater at

Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,

To an economist, freeway congestion is a sign that the price to drive on the freeway is

Good weather in cities such as San Diego

Suppose that a toll of $15 is charged to drive on a road, regardless of the time of day. If this toll brings about equilibrium travel flows at the busiest time of day, it will create __________ at all other times of day.

If a college sets its tuition __________ the equilibrium tuition, then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college.

Exhibit 5-3 -Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently $8,000). The impact of this ruling would be a loss of income to the athlete of __________ and an equal gain in consumers' surplus to the college represented by ________________.

If a change of law allows renters the right to vacate a property 90 days after receiving an eviction notice rather than 30 days after the eviction notice, the supply curve of apartments will shift upward and to the left once the law is enacted.

Residents of cities with a reputation for good weather, ceteris paribus,