Exam 4: Demand and Supply Applications

Related to the Economics in Practice on p.88: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3.An example of an effective price ceiling would be government setting the price of pencils at

Favored customers are customers who receive special treatment from dealers during periods of

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3.An example of an effective price floor would be the government setting the price of pencils at

Among the methods of nonprice rationing are

A firm that sells a car for $30,000 gets producer surplus of $30,000.

Refer to the information provided in Figure 4.1 below to answer the questions that follow. Figure 4.1 -Refer to Figure 4.1.Assume that initially there is free trade.If the United States then imposes a 10-cent tax per apple,

Refer to the information provided in Figure 4.6 below to answer the questions that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -In figure 4.6 at equilibrium,consumer surplus is area

Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5 -Refer to Figure 4.5.Assume that initially there is free trade.If the United States then imposes a $10.00 tax per CD-Rom drive on imported CD-Rom drives,

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3.If the government will not allow retailers to charge less than $0.50 for a pencil,which of the following will happen?

Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5 -Refer to Figure 4.5.At the world price of $15 per CD-Rom drive,the United States imports ________ million CD-Rom drives.

Goods are allocated in a market system by price rationing.

People scalping tickets for a rock concert can sell their tickets for at least a normal profit

The government imposes a maximum price on apartments that is ABOVE the equilibrium price.You accurately predict that

The total of consumer plus producer surplus is greatest

Refer to the information provided in Figure 4.5 below to answer the questions that follow. Figure 4.5 -Refer to Figure 4.5.If a $10.00 per CD-Rom drive tax is levied on imported CD-Rom drives,the United States will

In a "black market," goods are traded at market determined prices.

Refer to the information provided in Figure 4.6 below to answer the questions that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -In figure 4.6 if price goes from equilibrium to P1,producer surplus changes by the area

If the price floor is set above the equilibrium price,

A U.S.import fee on oil would reduce imports and raise the price of U.S.oil products.