Exam 4: Extensions of Demand and Supply Analysis

The market for gasoline in May is in equilibrium, at a market clearing price of $2.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes

Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this.

In which decade did the U.S. federal government first establish a system of agricultural price supports?

When the government establishes a minimum price for an agricultural product above the equilibrium price, the government is creating a(n)

The decrease in the price of gasoline to a national average of less than $2.0 during the summer of 2016 was most likely a result of

-Suppose a price ceiling is set above the equilibrium price. Now suppose that policy makers decide to raise the price ceiling. This increase in the price ceiling will cause which of the following to occur?

If supply increases and demand decreases

In the labor market, adjustments to changes in supply and demand

-Refer to the above figure. A price control has been set which has led to a shortage. This means that a

-Refer to the above figure for the corn market. The government wants to set an effective price support in the corn market. To be effective the price should be set

In which of the following situations will market clearing price increase and the equilibrium quantity decrease?

If demand increases while supply decreases, then the equilibrium price

When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called

Producer surplus is

Rationing of resources, goods, and services

If the government imposed a price ceiling on gasoline above this good's current market clearing price, there would be

The price of labor in the agricultural industry has just increased. For agricultural products, this will lead to

In a market system, how are the price signals established?

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

Using a graph, show a market equilibrium. Suppose the costs of inputs increase. How is this shown on the graph? Explain what is happening in the market.