Exam 4: Extensions of Demand and Supply Analysis

Who gains and who loses from rent controls?

A market in which a price-controlled good is sold at an illegally high price is known as

In the United States, government-imposed price supports are most often associated with

If supply increases and demand decreases,

Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?

The adverse effects of rent controls include

Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food, Security, and Bioenergy Act.

Suppose the market clearing price for gasoline is $4.75 per gallon. Now suppose that policy makers pass a law requiring that the maximum price that can be charged is $3.75 per gallon. Such a situation is an example of

The objective of rent controls is to

-Refer to the above figure. If a price ceiling of $3 was set,

During the Winter Olympics in Vancouver, some residents rented rooms to visitors. This behavior

The market clearing price of corn has just increased. Which of the following could have caused this change?

The rationing function of prices refers to

Because of scarcity, rationing is

Intermediaries, known as middlemen, specialize in

Which of the following must occur as a result of ceilings on apartment rents that are set below market clearing rental rates?

In a world of scarcity, there has to be some way to ration the available resources. According to economists, the most efficient use of available resources occurs when rationing occurs via

-Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect

The price of milk increases. Which of the following is NOT part of the likely chain of events that follows from this price change?

Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this.