Exam 4: Extensions of Demand and Supply Analysis

If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________.

Many economists estimate that for every 10 % increase in relative minimum wage rates, there is a corresponding decrease in employment of those affected equal to

When rent controls establish a legal maximum rental rate below the equilibrium rental rate,

A technological advancement has just occurred in the computer chip industry. In the computer chip market this will lead to

The price system

The rationing function of prices refers to

Rent controls are

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

If both supply and demand simultaneously decrease,

Suppose the price of cheese rises. In the market for pizza, one would expect that

In which decade did the U.S. federal government first establish a system of agricultural price supports?

When are black markets likely to arise?

Which of the following must occur as a result of ceilings on apartment rents that are set below market clearing rental rates?

With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will

If the government sets a minimum price at which a good or service can be sold, it thereby creates

A supply restriction on imported goods, such as the government's restriction of imported oil for many years, is referred to as

If demand increases and supply decreases,

Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this.

When the supply and/or demand curve shift, the new market clearing price is

An example of a black market is