Exam 4: Extensions of Demand and Supply Analysis

Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium

-Suppose that demand for tablets increases, and simultaneously, the supply of tablets increases. Which of the following would you conclude definitely will occur in the market for tablets?

When the government sets a price floor which is below the equilibrium price

Which one of the following could account for an increase in the market clearing price of iPads?

If other factors remain unchanged, technological progress in producing good X definitely will lead to

Suppose the equilibrium quantity of ethanol has decreased. Which of the following could have caused this change?

-When are black markets likely to arise?

An import quota for sugar results in an increase in

Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate?

A price ceiling established below the market clearing price will usually cause

Holding demand constant, an increase in supply leads to

Total consumer surplus in a market is measured as the

The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called

Garbanzo Beans -Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?

An import quota is

The price system

If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the

Prices ration goods to

Which of the following would likely result as a consequence of rent controls?

In economic terms, the total price of a pound of meat for an individual who has waited in line is