The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price PS1U1B12 S1U1B0and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P1 is area _____.

A) -EFI B) EFJ - P2JIP1 C) -P2FIP1 D) P1IM A) -EFI B) EFJ - P2JIP1 C) -P2FIP1 D) P1IM

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price PS1U1B12 S1U1B0and quantity B. Figure 10-1 -Refer to Figure 10-1.The aggregate consumer surplus at the initial point of equilibrium,F,is _____.

A) EFJ B) LEJP2 C) LEP3 D) LFP2 A) EFJ B) LEJP2 C) LEP3 D) LFP2

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price PS1U1B12 S1U1B0and quantity B. Figure 10-1 -In Figure 10-1,the aggregate producer surplus after a price ceiling is set at P1 is area _____.

A) MFP2 B) MIEP3 C) MIJP2 D) MIP1 A) MFP2 B) MIEP3 C) MIJP2 D) MIP1

Exam 10: Using the Competitive Model

Given that sale of crack cocaine for a positive price is completely banned in certain parts of the world,why is it that there is a thriving black market for this illegal drug? Explain with the help of demand and supply curves.

Free

(Essay)

4.9/5

(40)

Question 1

Correct Answer:

Verified

Banning the sale of a good for a positive price is the same as setting a price ceiling of zero for the good.The demand for crack cocaine,which is a highly addictive substance,is inelastic.The supply of crack cocaine,just like for any other commodity,will increase as its price increases.. At a price of 0,quantity demanded is greater than the quantity supplied.In a competitive market,this would push up prices till the quantity demanded and supplied are the same.Since the price cannot increase,the shortage in the market persists.A shortage in a market due to a price restriction usually leads to the formation of black markets for the commodity.Since the demand in the market is not satisfied,buyers and sellers form black markets where the commodity is usually sold at prices that are higher than free-market prices.

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market. Figure 10-3 -In Figure 10-3,trade increases consumer surplus in the U.S.by _____.

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

Suppose there is a city which licenses cabs,but cab owners find they cannot get anyone to buy their medallions at any price.You can conclude that:

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

How do price ceilings in the rental housing market affect tenants?

(Multiple Choice)

4.8/5

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Question 4

A given per-unit excise tax will increase the short run product price by the highest amount when:

(Multiple Choice)

4.8/5

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Question 5

The long-run supply curve in a constant-cost competitive industry is a(n)_____ line.

(Multiple Choice)

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Question 6

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P₁ is area _____.

(Multiple Choice)

4.8/5

(33)

Question 7

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The aggregate consumer surplus at the initial point of equilibrium,F,is _____.

(Multiple Choice)

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Question 8

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the producers.

(Multiple Choice)

4.8/5

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Question 9

A per-unit excise tax on a single competitive firm causes:

(Multiple Choice)

4.9/5

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Question 10

Suppose the following supply and demand curves govern the market for lungs: Q_S = 4,000 + P and Q_D = 10,000 -2P. ( A)Assume that individuals are allowed to sell their lungs.Graph the supply and demand curves and calculate the equilibrium price and quantity.Identify graphically and calculate total surplus.

(Essay)

4.8/5

(40)

Question 11

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -In Figure 10-1,the aggregate producer surplus after a price ceiling is set at P₁ is area _____.

(Multiple Choice)

4.8/5

(36)

Question 12

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the consumers.

(Multiple Choice)

4.9/5

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Question 13

Which of the following is true of deregulation and airline safety in the U.S.?

(Multiple Choice)

4.9/5

(36)

Question 14

Rent controls in the rental housing market:

(Multiple Choice)

4.9/5

(42)

Question 15

Suppose the demand and supply for apples is given by the following supply and demand curves: Q_S = (1/3)P - (4/3)and Q_D = 12 - P. ( A)Graph and calculate the equilibrium price [P] and quantity [Q].

(Essay)

4.9/5

(41)

Question 16

Consider two increasing-cost competitive industries (A and B)having identical supply curves.However,the demand curve faced by industry A is more inelastic than the demand curve of industry B.Which of the following is true if a per-unit excise tax is levied on the output of both the industries?

(Multiple Choice)

4.7/5

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Question 17

The following figure shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLY_US.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A. Figure 10-5 -Refer to Figure 10-5.After the import quota has been imposed,the equilibrium price in the domestic market changes to _____.

(Multiple Choice)

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Question 18

The U.S.airline industry,prior to deregulation,was characterized by _____.

(Multiple Choice)

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Question 19

When a price ceiling is imposed in a competitive market at a level below the equilibrium price:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 96

Given that sale of crack cocaine for a positive price is completely banned in certain parts of the world,why is it that there is a thriving black market for this illegal drug? Explain with the help of demand and supply curves.

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market. Figure 10-3 -In Figure 10-3,trade increases consumer surplus in the U.S.by _____.

Suppose there is a city which licenses cabs,but cab owners find they cannot get anyone to buy their medallions at any price.You can conclude that:

How do price ceilings in the rental housing market affect tenants?

A given per-unit excise tax will increase the short run product price by the highest amount when:

The long-run supply curve in a constant-cost competitive industry is a(n)_____ line.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P₁ is area _____.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The aggregate consumer surplus at the initial point of equilibrium,F,is _____.

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the producers.

A per-unit excise tax on a single competitive firm causes:

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -In Figure 10-1,the aggregate producer surplus after a price ceiling is set at P₁ is area _____.

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the consumers.

Which of the following is true of deregulation and airline safety in the U.S.?

Rent controls in the rental housing market:

Suppose the demand and supply for apples is given by the following supply and demand curves: Q_S = (1/3)P - (4/3)and Q_D = 12 - P. ( A)Graph and calculate the equilibrium price [P] and quantity [Q].

Consider two increasing-cost competitive industries (A and B)having identical supply curves.However,the demand curve faced by industry A is more inelastic than the demand curve of industry B.Which of the following is true if a per-unit excise tax is levied on the output of both the industries?

The U.S.airline industry,prior to deregulation,was characterized by _____.

When a price ceiling is imposed in a competitive market at a level below the equilibrium price:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Exam 10: Using the Competitive Model

Given that sale of crack cocaine for a positive price is completely banned in certain parts of the world,why is it that there is a thriving black market for this illegal drug? Explain with the help of demand and supply curves.

The following figure shows the demand and supply for a commodity in the domestic U.S.market as well as the global market.The commodity is imported from the rest of the world to the U.S.market. Figure 10-3 -In Figure 10-3,trade increases consumer surplus in the U.S.by _____.

Suppose there is a city which licenses cabs,but cab owners find they cannot get anyone to buy their medallions at any price.You can conclude that:

How do price ceilings in the rental housing market affect tenants?

A given per-unit excise tax will increase the short run product price by the highest amount when:

The long-run supply curve in a constant-cost competitive industry is a(n)_____ line.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P2 and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P1 is area _____.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P2 and quantity B. Figure 10-1 -Refer to Figure 10-1.The aggregate consumer surplus at the initial point of equilibrium,F,is _____.

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the producers.

A per-unit excise tax on a single competitive firm causes:

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P2 and quantity B. Figure 10-1 -In Figure 10-1,the aggregate producer surplus after a price ceiling is set at P1 is area _____.

If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the consumers.

Which of the following is true of deregulation and airline safety in the U.S.?

Rent controls in the rental housing market:

Suppose the demand and supply for apples is given by the following supply and demand curves: QS = (1/3)P - (4/3)and QD = 12 - P. ( A)Graph and calculate the equilibrium price [P*] and quantity [Q*].

Consider two increasing-cost competitive industries (A and B)having identical supply curves.However,the demand curve faced by industry A is more inelastic than the demand curve of industry B.Which of the following is true if a per-unit excise tax is levied on the output of both the industries?

The U.S.airline industry,prior to deregulation,was characterized by _____.

When a price ceiling is imposed in a competitive market at a level below the equilibrium price:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P₁ is area _____.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -Refer to Figure 10-1.The aggregate consumer surplus at the initial point of equilibrium,F,is _____.

The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P₂and quantity B. Figure 10-1 -In Figure 10-1,the aggregate producer surplus after a price ceiling is set at P₁ is area _____.

Suppose the demand and supply for apples is given by the following supply and demand curves: Q_S = (1/3)P - (4/3)and Q_D = 12 - P. ( A)Graph and calculate the equilibrium price [P] and quantity [Q].