Exam 4: Supply and Demand: Applications and Extensions

Figure 4-21 Refer to Figure 4-21. The price received by sellers after the tax is imposed is

Economic analysis indicates minimum wage legislation has

The actual benefit of a government subsidy is determined primarily by

Figure 4-20 Refer to Figure 4-20. The burden of the tax on sellers is

Under rent control, tenants can expect

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

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?

A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to cause which of the following changes in the labor market for accountants?

Figure 4-3 Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?

Figure 4-19 Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S₁ to S₂, the resulting quantity of gasoline that is bought and sold is

When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in

Figure 4-25 Refer to Figure 4-25. The tax causes a reduction in producer surplus that is represented by area

A price ceiling that sets the price of a good below market equilibrium will cause

If there was an increase in the excise tax imposed on guitar suppliers, what would be the effect on the equilibrium price and quantity of guitars?

If a government price control succeeds in affecting price, it can be expected to lead to a corresponding

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

The deadweight loss (or excess burden) resulting from levying a tax on an economic activity is the

Use the figure below to answer the following question(s). Figure 4-12 Refer to Figure 4-12. The supply curve S and the demand curve D₁ indicate initial conditions in the market for college textbooks. A new government program is implemented that grants students a $30 per textbook subsidy on every textbook they purchase, shifting the demand curve from D₁ to D₂. Which of the following is true for this subsidy given the information provided in the exhibit?

If a $2 tax per bottle of wine is imposed on wine producers, which of the following will occur?

Use the figure below to answer the following question(s). Figure 4-7 Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?