Exam 4: Supply and Demand: Applications and Extensions

Figure 4-22 Refer to Figure 4-22. The amount of the tax per unit is

If a $5,000 property tax is placed legally (statutorily) on the buyers of new automobiles and as a result the price of automobiles at dealerships rises by $2,000, the actual burden of the tax

Figure 4-21 Refer to Figure 4-21. The amount of the tax per unit is

Suppose an excise tax is imposed on two products X and Y, both of which have identical supply elasticities. The demand for good X is highly elastic, while the demand for good Y is highly inelastic. The deadweight loss (or excess burden) will be

How would an increase in the price of paper influence the market for college textbooks?

The average tax rate (ATR) is defined as

Use the figure below to answer the following question(s). Figure 4-9 Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?

Figure 4-22 Refer to Figure 4-22. Sellers pay how much of the tax per unit?

Figure 4-25 Refer to Figure 4-25. After the tax is levied, consumer surplus is represented by area

After the ban on the production and sale of alcohol ended in 1933,

Taxes adversely affect the allocation of resources because

Which of the following generalizations about the benefit of a subsidy is correct?

A new law requiring plumbers to pass strict certification tests that reduce the number of plumbers would

Figure 4-22 Refer to Figure 4-22. The equilibrium price in the market before the tax is imposed is

In the supply and demand model, a subsidy granted to buyers is illustrated by

The more elastic the supply of a product, the more likely that the actual benefit of a subsidy granted of the product will

Which of the following would occur following the imposition of a price ceiling that sets the price of a good (for example, rental housing) below the market equilibrium?

Which of the following is a true statement regarding the economic impact of a subsidy?

When the government increased its involvement in rescue efforts on Mount McKinley (the tallest peak in North America), the number of mountain climbing deaths

Suppose there is an increase in the excise tax imposed on cigarettes, a good for which the demand is relatively inelastic. The short-run burden of the tax increase will be borne primarily by