Exam 4: Price Controls and Quotas: Meddling With Markets

Use the following to answer questions: -(Table: The Market for Pop)Use Table: The Market for Pop.If the government imposes a price ceiling of $0.50 per can of pop the quantity of pop demanded will be _____ cans.

Use the following to answer questions: Figure: The Shrimp Market -(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government imposes a quota limiting sales of shrimp to 250 kilograms,it will have the same effect on transactions as a price floor of:

Typically,the government limits the quantity of a good that can be bought and sold by:

Suppose that the Jamaican government sets coffee prices at $1 per kilogram when the market price is $10 per kilogram.The government's actions will:

Which example would be considered a black market transaction?

Use the following to answer questions: -(Figure: Rent Controls)Use Figure: Rent Controls.If rent controls are set at Rent₁:

Use the following to answer questions: -(Figure: Rent Controls)Use Figure: Rent Controls.Without rent controls,the equilibrium quantity is:

The government decides to impose a price ceiling on a good because it thinks that the market-determined price is too high.If it imposes the price ceiling above the equilibrium price:

Suppose that Canada and the European Union impose price floors on many similar agricultural products.These price floors lead to unwanted surpluses.To deal with a surplus:

One of the ways rent control is inefficient is that it leads to:

The Montreal Symphony Orchestra wants to make sure that its concerts are affordable for all residents of Montreal and therefore prices all of its tickets at $25.However,outside Place des Arts (the concert hall where they play),people can sell the same tickets for $75 or more.The true cost to the concert-goer of a ticket to the symphony is at least:

A binding rent-control price ceiling does NOT result in:

In Europe,the minimum wage has led to:

Use the following to answer questions: Figure: The Market for Butter -(Figure: The Market for Butter)Use Figure: The Market for Butter.If a government price floor of $1.30 is imposed on this market,an inefficiency will result in the form of a _____ of _____ million kilograms of butter.

A binding price ceiling results in:

The minimum wage,which sets a lower limit on the wages that workers can earn,is often above the equilibrium price.The minimum wage is an example of a(n):

Use the following to answer question : -(Figure: Supply and Demand)Use Figure: Supply and Demand.A binding price floor is represented by:

Use the following to answer question : -(Figure: The Market for Milk)Use Figure: The Market for Milk.With a binding price floor,the price could be equal to _____,consumers would demand _____,and producers would supply _____.

By definition,in a black market,goods or services are bought and sold:

The most likely reason that the government would implement a _____ is because it feels that the price is too low for _____.