Exam 4: Supply and Demand: Applications and Extensions

Figure 4-21 Refer to Figure 4-21. The price paid by buyers after the tax is imposed is

Which of the following statements is true?

A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because

Figure 4-20 Refer to Figure 4-20. The price that buyers pay after the tax is imposed is

Suppose that the minimum wage was increased to $10 per hour. Which of the following would be most likely to result from the minimum wage increase?

Use the figure below to answer the following question(s). Figure 4-8 Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S₂. Imposing the tax increases the equilibrium price of soft coal from

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

Figure 4-21 Refer to Figure 4-21. How much tax revenue does this tax produce for the government?

The large amount of violence associated with the current drug trade is mostly caused by

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. How much revenue would the $.40 gasoline tax raise?

If a $50 subsidy is legally (statutorily) granted to the sellers of weed eaters and as a result the price of weed eaters to consumers falls by $30, the actual benefit of the subsidy

The more inelastic the demand for a product, the more likely that the actual benefit of a subsidy granted on the product will

An income tax is defined as regressive if

Figure 4-17 Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result,

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

Which of the following would tend to increase the price of lumber?

A payment the government makes to either the buyer or seller, usually on a per-unit basis, when a good or service is purchased or sold is called a

Deadweight losses are associated with

Figure 4-5 Figure 4-5 represents the market for gasoline before and after a per-gallon tax. What does the triangular area ABC represent?

Use the figure below to answer the following question(s). Figure 4-13 Refer to Figure 4-13. The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?