Exam 3: 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?

Of the following groups,who gains from rent controls?

Assume that the market clearing price for a shirt is $20,but that the maximum price that can be charged is $15.This is an example of

Which of the following is an effect of a minimum wage law that establishes a ceiling wage below the current market clearing wage?

Government imposed price controls often lead to

If demand increases while supply decreases,then the equilibrium price

Which of the following is NOT a voluntary exchange?

What are transaction costs? What are some ways in which society reduces transaction costs?

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

Suppose that demand for tablets increases,and simultaneously,the supply of tablets increases.Which of the following would you conclude definitely will occur in the market for tablets?

Who ultimately benefits from price supports in agriculture?

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

List prices on new cars do not change very often,so

An effective price ceiling usually generates

Price controls

-Refer to the above figure.Suppose the demand curve shifts from D_A to D_B,while the supply curve remains at S_A.Which of the following statements is FALSE?

One effect of a minimum wage in the market for low-skilled labor is

If a price floor is set below the current market clearing price,then

Which of the following is a price floor?

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50,then