Exam 4: A : Supply and Demand: Applications and Extensions

If a $50 subsidy is legally (statutorily) granted to the sellers of exercise equipment and as a result the price of exercise equipment to consumers falls by $30, the actual benefit of the subsidy

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?

A minimum wage that is set above a market's equilibrium wage will result in

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?

The actual burden of a tax is determined primarily by

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

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

Use the figure below to answer the following question(s). Figure 4-4 -Given the demand and supply conditions shown in Figure 4-4, if the government imposes a price ceiling of a, which of the following would be true?

When a shortage of a good is present due to a price ceiling,

The actual burden of a tax

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?

In the two decades following 1990, subsidized federal loans per full-time student more than tripled. Economic analysis indicates that this expansion in subsidies

The benefit of a subsidy will go primarily to sellers when the