Exam 4: Asupply and Demand: Applications and Extensions

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?

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

When a price ceiling prevents a higher market price from rationing a good,

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?

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?

Other things constant,how will a decrease in the wages of teenagers affect the market for fast food hamburgers?

Figure 4-17 -Refer to Figure 4-17.Suppose a price ceiling of $4.50 is imposed.As a result,

If a government-imposed price floor legally sets the price of milk above market equilibrium,which of the following will most likely happen?

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

Economists have argued that rent control is "the best way to destroy a city,other than bombing." Why would economists say this?

Figure 4-2 -Given the demand and supply conditions shown in Figure 4-2,if the government imposes a price ceiling of a,indicate the quantity consumers would like to buy and the amount producers would be willing to supply.

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?

Figure 4-1 -Figure 4-1 illustrates the market for compact discs.If the government imposes a price floor of $25 for compact discs,which of the following will be true?

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

When government gives a subsidy to buyers of good X,the benefits of the subsidy flow to

In a market economy,which of the following would most likely cause a prolonged grain surplus?

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

A law establishing a minimum legal price for a good or service (the minimum wage for example)is known as

An excise tax levied on a product will impose a larger relative burden on consumers (and a smaller relative burden on sellers)when

Suppose that the federal government levies a 50 cent excise tax on gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic.Under these circumstances,the burden of the tax