Exam 4: Extensions of Demand and Supply Analysis

In the housing market, rents serve the purpose of

In a market system, how are the price signals established?

Specialists who try to lower transaction costs are

Which one of the following statements is true?

Consumer surplus is

-Refer to the above table. Suppose the demand for smartphones rises because more people use the Internet with a smartphone. The new equilibrium price will be

In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?

In which of the following situations will both market clearing price and the equilibrium quantity increase?

-A black market is a market in which

-Refer to the above figure. A price control has been set which has led to a shortage. This means that a

All other factors being constant, a reduction in price tends to cause which of the following?

What are the effects of an increase in the minimum wage? Who would be most affected?

In which of the following situations will both market clearing price and the equilibrium quantity decrease?

A supply restriction on imported goods, such as the government's restriction of imported oil for many years, is referred to as

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day. In the market for chocolate, this information will lead to

Why does an economy need a rationing mechanism?

Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?

Some oil refineries were damaged by Hurricane Ike of 2008, leading to

If producers must receive a higher price to be induced to produce any quantity, we can conclude that

When a government imposes price controls, the result is that