Exam 4: Supply and Demand: Applications and Extensions

Use the figure below to answer the following question(s). Figure 4-13 Refer to Figure 4-13. The supply curve S and the demand curve D₁ indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D₁ to D₂. Which of the following is true for this subsidy given the information provided in the figure?

Use the figure below to answer the following question(s). Figure 4-4 Given the demand and supply conditions shown in Figure 4-4, what will happen as the result of imposing a price ceiling of a?

The actual burden of a tax is determined primarily by

The statutory incidence (or burden) of a tax refers to

A black market is

When policymakers impose price controls, they

If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?

If Jayla's tax liability increases from $10,000 to $16,000 when her income increases from $30,000 to $40,000, her marginal tax rate is

Both price floors and price ceilings lead to

Suppose that a tax is placed on a particular good. If the buyers end up bearing most of the tax burden, this indicates that the

The actual burden of a tax

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?

A tax for which the average tax rate remains constant at all levels of income is defined as a

Figure 4-24 Refer to Figure 4-24. The price that sellers receive after the tax is imposed is

Use the figure below to answer the following question(s). Figure 4-8 Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?

After a natural disaster, such as a hurricane, the increased demand for certain items (like lumber, electric generators, and chainsaws) causes their prices to rise. These higher prices

Use the table below to choose the correct answer. For the income range illustrated, the tax shown here is

Which of the following examples illustrates a proportional income tax?

Which of the following about minimum wage is true?

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