Exam 4: Extensions of Demand and Supply Analysis

Ways to ration goods include

Holding supply constant, a reduction in demand leads to

-Refer to the above figure. A price floor of $60 results in

Which of the following would likely result as a consequence of rent controls?

Many economists estimate that for every 10% increase in relative minimum wage rates, there is a corresponding decrease in employment of those affected equal to

An increase in demand and a decrease in supply will lead to an

Which of the following will cause, other things being equal, a movement along the supply curve for HDTVs?

In the United States, government-imposed price supports are most often associated with

If demand and supply both decrease

When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called

An unexpected import restriction imposed on mangoes by the USDA

The market clearing price of corn has just increased. Which of the following could have caused this change?

"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?

Rent control is an example of

Other things being equal, a higher price induces

A maximum legal price that may be charged for a particular good or service is known as a

With respect to the market clearing price and the equilibrium quantity of good B, increases in the demand for and the supply of good B will definitely

The price system has

A long line at the campus bookstore at the beginning of the term is an example of

The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because