Exam 3: Extensions of Demand and Supply Analysis

-Refer to the above figure.A surplus occurs if the government imposes

If one day it was discovered that lime juice caused cancer,which of the following would likely result?

If other factors remain unchanged,technological progress in producing good X definitely will lead to

Price floors

In a freely operating market system,queuing is most likely to occur when

Specialists who try to lower transaction costs are

An import quota will

If Niki is willing to pay up to $5 for an ice-cream bar but she actually pays $2 for it.The consumer surplus of the ice-cream bar for Niki

As demand for MP3 music downloads increases,other things being equal,we can expect

If the demand for a product rises and the supply stays the same

In economic terms,the total price of a pound of meat for an individual who has waited in line is

Rationing through the price system

When the government restricts the quantity of a good to zero

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

If demand decreases and supply increases,

To enhance their prestige,some country clubs like to point to the fact that they have a waiting list for new members.Even at clubs with high initiation fees,it is common that prospective members have to wait three or more years before there is room for them on the membership rolls.How do these country clubs set the price of membership to ensure that they have a waiting list?

-In the above figure,a shortage could be caused by a government price ceiling set at

People consume more fresh fruit in the summer than during the rest of the year,yet the prices of fresh fruit are lower in the summer than in other seasons.What accounts for this?

A price floor above the market clearing price typically results in I.an excess quantity supplied II.a shortage III.an excess quantity demand

If both the demand curve and the supply curve shift to the right,we can unambiguously conclude that the