Exam 4: Extensions of Demand and Supply Analysis

If a price ceiling is set above the current market clearing price, then

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

If demand increases while supply simultaneously decreases, then the equilibrium quantity

The price system features

All of the following are examples of nonprice rationing devices EXCEPT

In order to be effective, a price ceiling

The gains from consumer surplus and producer surplus occur when

-Scalping at major sporting events is an example of

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?

Which of the following is NOT an attempt to evade rent controls?

A newspaper headline asserts: "Falling Demand Pushes Down Housing Prices." This headline

The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to

The more flexible prices are, the

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

-A price floor represents

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

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when

-Consider the above table. If the government imposes a price ceiling on strawberries of $8 per pound, what would be the likely result?

Prices ration goods to

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