Exam 4: Extensions of Demand and Supply Analysis

If a producer is willing to receive at least $2 for a pen that she manufactures but she actually receives $7 for it. The producer surplus of the pen for that producer is

The difference between quantity restrictions and price ceilings as to their effect on the market is that

The gains from trade within a price system is

Prices can achieve the rationing function when

According to the text, during World War II rationing was conducted in the U.S. through the use of

-Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market quantity will be

Which of the following are ways to ration goods and services?

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

-Refer to the above figure. If the government imposes a price ceiling of $20

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

Of the following groups, who gains from rent controls?

Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.

Rent controls are

-Refer to the above figure. If a price ceiling of $3 was set

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

A severe drought has devastated cocoa plants, causing an increase in the price of chocolate. In the market for chocolate chip cookies

An import quota for sugar results in an increase in

Government intervention in agriculture usually involves

Who gains and who loses from rent controls?

In recent years, the price of smartphones has fallen, while the quantity exchanged of smartphones has risen. We can conclude that this is most likely a result of