Exam 4: Extensions of Demand and Supply Analysis

Prices in a market economy perform a rationing function because they reflect

In the automobile industry, workers have just negotiated a new contract giving workers a large raise. There has also been an increase in the number of licensed drivers who are in the market for a new car. In the market for new automobiles, the effects that these changes will have on the equilibrium price and quantity are

When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called

If supply and demand both simultaneously increase

If demand and supply both decrease

During the Winter Olympics in Vancouver, some residents rented rooms to visitors. This behavior

Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate?

Scalping at major sporting events is an example of

Ways to ration goods include

The signaling aspect of the market system refer to

An import quota is a limit on the

Who gains and who loses from rent controls?

Suppose local educators argue that teachers' salaries are too low. At the same time it is said that the school district received 750 applications for 5 new openings. Are salaries too low? Explain.

People often complain about price gouging after a disaster such as a hurricane. Suppose the government successfully prevented price increases due to the disaster. We would expect

If a price ceiling were established above the equilibrium price,

In a market system, intermediaries in the exchange process are known as

Who benefits primarily from rent controls?

-Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then

Which group of individuals most likely benefits from rent controls?