Exam 5: Using Supply and Demand

Suppose that initially, the equations for demand and supply are Qd = 48 - 4P and Qs = 4P - 16, respectively.If the quantity supplied increases by 4 at every price (so that the supply curve shifts to the right), the equilibrium price will change from:

Which of the following is the best example of an excise tax?

Quantity restrictions become more valuable to those holding the rights to sell the good when:

A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars.What best describes facts behind the headline?

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans).At the same time, the price of diesel fuel, used by fishermen to fuel their boats, falls.What is the effect on the market for fish?

Refer to the graph shown that depicts a third-party payer market for prescription drugs.If the co-payment is $2 per pill, what will be the quantity demanded?

If the government imposes an excise tax on gasoline equal to $0.25 per gallon and the demand curve for gasoline is downward-sloping, the supply of gasoline will:

Refer to the graph shown.If sellers receive a price of $15, quantity supplied will equal:

Refer to the table shown that depicts a third-party payer market.What is the quantity demanded if a $1 co-pay is established?

Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 - 5W.If the minimum wage were set at $6 an hour, how many people would not be able to find work?

Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 - 5W.The government has passed a law that subsidizes wages by $1 per hour.The equilibrium wage and quantity of labor with the subsidy is:

When a country imposes a tariff:

Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively.The government decides to impose a price floor of $50 per ton.What would be the resulting market distortion?

Taxi medallions were issued in New York City to:

A surplus of a good could possibly be eliminated by:

Refer to the following graph. Demand and supply are initially D and S1 respectively.Which of the following best describes the effect of a $0.50 per pound tariff on Danish hams imported into the United States?

Refer to the graph shown.If consumers have a $15 co-pay, total expenditure on the product by both the third party and the consumer will equal:

Suppose that there is a renewed interest in eating caviar at the same time that the supply of Russian caviar shrinks.What would be the most likely effect of these events on the price and quantity of caviar sold?

Refer to the following graph. If this graph represents the supply of and demand for an imported product, a tariff of t will result in revenue for the government shown by area:

The U.S.imposes substantial taxes on cigarettes but not on loose tobacco.When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely: