Exam 5: Price Controls and Quotas

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 500 kilograms,the quota rent per kilogram is:

When a tenant in a rent-controlled apartment sublets the apartment to another renter at a rent higher than the price ceiling:

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

The amount that consumers are willing to pay for the quota limit quantity is the:

If the government imposes a limit on sales of a good or service by licensing the right to sell a given quantity of the good,the difference between the demand and supply price is:

In Europe,the minimum wage has led to:

Use the following to answer question 41: -(Figure: The Market for Hybrid Cars)Use Figure: The Market for Hybrid Cars.If there were a binding price ceiling in the market for hybrid cars,one possible price would be equal to _____,consumers would demand _____,and producers would supply _____.

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:

Although they cost more than $200 000 when they were issued in the 1930s,the New York taxicab medallions are relatively inexpensive today,selling for around $3 000.

If minimum wages are set above the equilibrium wage in the market,then the number of workers hired will be _____ the number of people who are willing to work at the prevailing wage.

Use the following to answer question 96: -(Figure: The Market for Tortillas)Use Figure: The Market for Tortillas.With a nonbinding price floor,the price could be equal to _____,consumers would demand _____,and producers would supply _____.

Deadweight loss is the lost gains associated with transactions that do not occur because of market intervention,such as a quota.

Use the following to answer question 97: -A binding price floor in the market for wheat:

Which example would be considered a black market transaction?

A limit on the amount of a foreign currency people are allowed to buy is an example of a quota.

Use the following to answer questions : -(Figure: Price Controls)Use Figure: Price Controls.A price floor has been set at point b.The area of deadweight loss that results from this price floor is:

Use the following to answer questions : Table: The Market for Pop Market for a Can of Pop Price ( \/ unit) Quantity Demanded (cans) Quantity Supplied (cans) 0.50 10 7 0.75 8 8 1.00 6 9 1.25 4 10 1.50 2 11 -(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,there will be:

Use the following to answer questions : Table: The Market for Pop Market for a Can of Pop Price ( \/ unit) Quantity Demanded (cans) Quantity Supplied (cans) 0.50 10 7 0.75 8 8 1.00 6 9 1.25 4 10 1.50 2 11 -(Table: The Market for Pop)Use Table: The Market for Pop.If the government imposes a price ceiling of $1 per can of pop the quantity of pop demanded will be _____ cans.

Which example is a quota?

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 1 000 kilograms,the quota rent per kilogram is: