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

After a natural disaster, such as a hurricane, the increased demand for certain items (like lumber, electric generators, and chainsaws) causes their prices to rise. These higher prices

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that the below-equilibrium prices established by rent controls would

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

Which of the following statements is true?

Studies indicate the demand for cigarettes is highly inelastic, while the demand for green peas tends to be elastic. Other things constant, how will this affect the incidence of an excise tax on these products?

Under rent control, tenants can expect

If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?

A tax for which the average tax rate rises with income is defined as a

A $25 government subsidy paid directly to buyers of jeans will result in

Which of the following will most likely result from rent controls that reduce monthly rental rates below market equilibrium?

When the government increased its involvement in rescue efforts on Mount McKinley (the tallest peak in North America), the number of mountain climbing deaths

Use the figure below to answer the following question(s). Figure 4-11 -Refer to Figure 4-11. On the Laffer curve shown, which of the following is true?

An income tax is defined as regressive if

A proportional tax is defined as a tax for which the

If Heather's tax liability increases from $10,000 to $13,500 when her income increases from $30,000 to $40,000, her marginal tax rate is

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

Use the figure below illustrating the impact of an excise tax to answer the following question(s). Figure 4-6 -The revenue generated by the tax illustrated in Figure 4-6 is given by the area

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

Use the table below to choose the correct answer. The tax schedule shown here is

Which of the following would occur following the imposition of a price ceiling that sets the price of a good (for example, rental housing) below the market equilibrium?