Exam 4: Asupply and Demand: Applications and Extensions

Use the figure below to answer the following question(s). Figure 4-10 -Refer to Figure 4-10.The accompanying graph shows the market for a good before and after an excise tax is imposed.The total tax revenue generated is indicated by

Figure 4-20 -Refer to Figure 4-20.The equilibrium price in the market before the tax is imposed is

The Laffer curve illustrates the relationship between

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?

Suppose the federal excise tax rate on gasoline is increased by 50 percent.Which of the following is the most likely impact on the tax revenue derived from the federal gas tax?

When a government subsidy is granted to the buyers of a product,sellers can end up capturing some of the benefit because

Suppose the market equilibrium price of corn is $5 per bushel,and the government sets a price ceiling of $4 per bushel.What is the most likely result of this action?

Figure 4-25 -Refer to Figure 4-25.After the tax is levied,consumer surplus is represented by area

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.Imposing the tax causes the equilibrium price of gasoline to increase from

Figure 4-24 -Refer to Figure 4-24.The amount of tax revenue received by the government is equal to the area

Other things constant,as the price of a resource increases,

When the purchase of a good is subsidized,economic analysis indicates that

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

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,

When a tax is imposed on a good,the actual incidence of the tax generally

When a government subsidy is granted to the sellers of a product,buyers can end up capturing some of the benefit because

About 35,000 general aviation multiengine airplanes are licensed to operate in the United States.If an additional $1,000-per-year tax was levied on each plane to raise general revenue,economic thinking suggests the

When prices of products are set below equilibrium,

Figure 4-22 -Refer to Figure 4-22.The effective price sellers receive after the tax is imposed is

According to the Laffer curve,