Exam 4: Extensions of Demand and Supply Analysis

Under rent controls

In a world of scarcity, there has to be some way to ration the available resources. According to economists, the most efficient use of available resources occurs when rationing occurs via

Which one of the following could account for an increase in the market clearing price of iPads?

As compared to the market clearing price, the total amount of consumer surplus and producer surplus is

Suppose that an early frost damages the Florida orange crop. As a result, the price of California oranges increases. Ceteris paribus, which one of the following statements best explains this situation?

-According to the above figure, if the government imposes a minimum wage equal to Wm, the effect will be

If a producer is willing to receive at least $5 for a pen that she manufactures but she actually receives $7 for it. The producer surplus of the pen for that producer is

Which rationing system leads to the most efficient use of available resources?

The decrease in the price of gasoline to a national average of less than $3.20 during the summer of 2012 was most likely a result of

Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is

Who is most likely to benefit from rent controls?

In some developing countries and in some former Communist countries, people exchange their domestic currencies for foreign currencies such as the dollar in black markets. Why would this practice go on?

Price controls often generate

-Refer to the above figure. At a price of $2 per gallon, the quantity demanded of gasoline is

-Refer to the above figure. A price control has been set which has led to a shortage. This means that a

A reduction in the minimum wage will tend to cause which of the following?

An increase in the equilibrium quantity of good X can be caused by

If other factors remain unchanged, technological progress in producing good X definitely will lead to

-Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?

The rationing function of prices refers to