Exam 3: Extensions of Demand and Supply Analysis

The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called

If equilibrium price falls and the equilibrium quantity of the good purchased decreases,what has happened to either the supply curve or to the demand curve?

What has been the market outcome of government-enforced price floors for agricultural products?

When the government sets a maximum price that can be charged for a good or service,it creates

A price ceiling set below the market clearing price will tend to cause which of the following?

What will happen when there is a rightward shift in the demand curve?

-Refer to the above figure.Suppose the government imposes a minimum wage rate of $20.00 per hour.This will likely result in

When a government increases an effective price ceiling for a product

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

In order to be effective,a price floor

Markets tend to

In 2010,a British Petroleum oil rig exploded in the Gulf of Mexico.The explosion resulted in a major oil spill and a decrease in the supply of oil.At the same time,the average price of gasoline decreased.Which of the following best explains the decrease in the price of gasoline?

When the government sets a price floor which is above the equilibrium price,

The textbook points out that rent controls have

In New York City,apartment rent can be adjusted only when a tenant leaves.This leads

A limit on the amount of strawberries that can be imported into the United States is an example of

Holding supply constant,an increase in demand leads to

The effect of a legal minimum wage set above the equilibrium wage rate is

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

For a given market demand curve,if the market clearing price increases,then the amount of producer surplus will