Exam 4: Demand and Supply Applications

4.2 Supply and Demand Analysis: An Oil Import Fee Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. At the world price of ________ per barrel of oil, the United States imports 6 million barrels of oil per day.

The market will be in equilibrium if ________ is set ________ the equilibrium price.

Related to the Economics in Practice on p. 77: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.

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 -Refer to Figure 4.6. Producer surplus changes by the area [E + F] if price goes from equilibrium to

Related to the Economics in Practice on page 77: If a hurricane results in the supply of hotel rooms decreasing and the equilibrium price for hotel rooms increases, the demand for hotel rooms ________ and total revenue from the sale of hotel rooms ________.

A shortage will occur if a ________ is set ________ the equilibrium price.

Producer surplus is the difference between the most a person is willing to pay and market price.

When supply is fixed or the product is unique, then price is

A U.S. import fee on steel would reduce imports and lower the price of U.S. steel products.

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. The government setting the price of pencils at $0.40 would be an example of an effective

The total of producer and consumer surplus is maximized when there is overproduction.

The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest

4.2 Supply and Demand Analysis: An Oil Import Fee Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. Assume that initially there is free trade. To reduce U.S. imports without a tax, the U.S. could

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 -Refer to Figure 4.6. If price is P1, the deadweight loss due to under production is area

The total of producer and consumer surplus is maximized when there is underproduction.

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

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,

4.2 Supply and Demand Analysis: An Oil Import Fee Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. If a $25 per barrel tax is levied on imported oil, the United States will

In the short run, nonprice rationing will happen whenever there is excess demand in a market.

It is necessary to ration a good whenever ________ exists.