Exam 4: Extensions of Demand and Supply Analysis

Following adjustments to a new equilibrium in a market, the market clearing price remains unchanged, but the equilibrium quantity is now lower. Which of the following could definitely have caused this outcome?

Total producer surplus in a market is measured as the

When a government imposes price controls, the result is that

Under rent controls,

-Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?

In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?

Price controls

What are the terms of exchange and how are these terms related to the price?

An import quota is

If demand decreases and supply increases,

Price floors in agriculture lead to

Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.

Which of the following is NOT an attempt to evade rent controls?

Rationing goods on the basis of price is a direct result of

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

"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?

Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?

Price ceilings often generate

Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food, Security, and Bioenergy Act.

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