Exam 4: Working With Supply and Demand

If an excise tax is imposed on steak,

If the government wants to manipulate the equilibrium price,it will normally create a price floor or price ceiling;if the government want to manipulate the equilibrium quantity,it will normally impose taxes or award subsidies.

If an excise tax is imposed on a good or service,

An excise tax on cigarettes

Federal subsidies to higher education have the effect of

Which of the following is an example of a stock variable?

A government-imposed price ceiling set below the market's equilibrium price will create an excess demand for a product.As a result of the excess demand,either the demand curve will tend to shift to the left or the supply curve will shift to the right-or both.

If the government thinks the price that a consumer has to pay for a good is too low,then which of the following would solve this problem?

-Figure 4-1 shows the supply and demand for socks.If a price ceiling of $4 per pair is imposed by the government

Whether an excise tax is imposed on a demander or supplier is irrelevant because

Both a price floor and a price ceiling will reduce that amount of a good that is traded in the market.

-In Figure 4-5,if the government imposes a price floor of $2,the result will be

Rent control is an example of a price ceiling.Which of the following problems must be addressed under a rent control program?

A flow variable

-In Figure 4-2,if the government imposes a price ceiling of $4,the result will be

If an excise tax is imposed on automobiles,

A price ceiling will increase the amount that is traded in the market while a price floor will reduce the amount that is traded in the market

If an excise tax is imposed on shoes,

Gary buys a house for $200,000 using $10,000 of his own money and gets a mortgage for the remaining $190,000.If the value of the house increases 7%,what will be the percentage increase in Gary's investment?

Which of the following would be an example of a flow variable?