Exam 4: Extensions of Demand and Supply Analysis

In which of the following situations will market clearing price decrease and the equilibrium quantity increase?

We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will decrease when

An increase in the price of labor used to produce good Y will lead to

If demand increases while supply decreases, then the equilibrium price

An increase in demand and a decrease in supply will lead to an

An increase in supply, other things being equal, will cause which of the following to occur?

If both supply and demand simultaneously decrease

In September 2005, destruction to U.S. gasoline refineries was caused by back-to-back storms along the U.S. Gulf Coast-Hurricane Katrina and Hurricane Rita. In one week, the average price of a gallon of gasoline in the United States increased by about 40 cents. Which of the following best explains why these events pushed up the price of gasoline?

A long line at the campus bookstore at the beginning of the term is an example of

The textbook points out that rent controls have

Transaction costs are

When import quotas are imposed by a government

An effective government imposed price ceiling will result

Instituting a rent control program will most likely lead to

A price ceiling set above the equilibrium price will cause which of the following?

If supply increases and demand decreases

Price floors in agriculture lead to

When the government restricts the quantity of a good to zero

If price increases and the quantity purchased increases, we know that

Governments may intervene in private markets through