Deck 6: Essay

Question 1

Figure 6-31
Refer to Figure 6-31.If the government set a price floor at $9,would there be a shortage or surplus,and how large would be the shortage/surplus?

Answer 1

A price floor set at $9 would not be binding,so there would be neither a shortage nor a surplus.

Question 2

Figure 6-32
Refer to Figure 6-32.If the government set a price ceiling at $40,would there be a shortage or surplus,and how large would be the shortage/surplus?

Answer 2

There would be a shortage of 20 units.

Question 3

Figure 6-31
Refer to Figure 6-31.If the government set a price ceiling at $8,would there be a shortage or surplus,and how large would be the shortage/surplus?

Answer 3

A price ceiling set at $8 would result in a shortage of 8 units.

Question 4

Figure 6-32
Refer to Figure 6-32.If the government set a price floor at $55,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 5

Figure 6-32
Refer to Figure 6-32.If the government set a price floor at $70,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 6

Figure 6-31
Refer to Figure 6-31.If the government set a price ceiling at $15,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 7

Define a price ceiling.

Question 8

Figure 6-32
Refer to Figure 6-32.If the government set a price ceiling at $50,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 9

Scenario 6-1
Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation
Refer to Scenario 6-1.If the government set a price ceiling at $12,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 10

When a price ceiling is binding,is the price ceiling set above or below the market equilibrium price?

Question 11

Figure 6-31
Refer to Figure 6-31.If the government set a price floor at $17,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 12

Figure 6-31
Refer to Figure 6-31.If the government set a price ceiling at $9,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 13

Figure 6-31
Refer to Figure 6-31.If the government set a price floor at $15,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 14

Scenario 6-1
Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation
Refer to Scenario 6-1.If the government set a price ceiling at $8,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 15

Does a binding price ceiling result in a shortage or a surplus in the market?

Question 16

Will a binding price floor result in a shortage or a surplus in the market?

Question 17

Define a price floor.

Question 18

Figure 6-32
Refer to Figure 6-32.If the government set a price ceiling at $80,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 19

When a price floor is binding,is the price floor set above or below the market equilibrium price?

Question 20

Scenario 6-1
Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation
Refer to Scenario 6-1.What are the equilibrium price and quantity in the market for good X?

Question 21

The following table shows the demand and supply schedules in a particular market.
Price
Quantity
Demanded
Quantity
Supplied
$1
8
3
$3
6
6
$5
4
9
$7
2
12
$9
0
15
If the government sets a price floor $2 above the equilibrium price,how many units will be sold in this market?

Question 22

Scenario 6-2
Suppose demand for a product is given by the equation and supply for the product is given by the equation
Refer to Scenario 6-2.Suppose the government sets a price floor at $13 for this product.Is this price floor binding,and what will be the size of the shortage/surplus in this market?

Question 23

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,how much is the burden of the tax on the buyers in this market?

Question 24

Figure 6-33
Refer to Figure 6-33.Suppose a $3 per-unit tax is imposed on the sellers of this good.How much is the burden of this tax on the sellers in this market?

Question 25

Figure 6-33
Refer to Figure 6-33.Suppose a $3 per-unit tax is imposed on the sellers of this good.What price will buyers pay for the good after the tax is imposed?

Question 26

Figure 6-33
Refer to Figure 6-33.Suppose a $3 per-unit tax is imposed on the sellers of this good.What is the effective price that sellers will receive for the good after the tax is imposed?

Question 27

Scenario 6-1
Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation
Refer to Scenario 6-1.If the government set a price floor at $13,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 28

Scenario 6-2
Suppose demand for a product is given by the equation and supply for the product is given by the equation
Refer to Scenario 6-2.Suppose the government sets a price floor at $13 for this product.Initially,is this price floor binding? Suppose that for some reason demand were to decrease to
Would the $13 price floor be binding after the shift in the demand curve? If so,what is the size of the resulting shortage/surplus?

Question 29

In a particular market,market demand is given by the equation
and market supply is given by the equation C:\Users\user\Dropbox\Quizplus Parsing Documents\To Be Parsed\NEW Files\TB2297,Principles of Macroeconomics 8th Edition by N.Gregory Mankiw\TB2297,Principles of Macroeconomics 8th Edition by N.Gregory Mankiw\Images\Sec-All-Short-Answer-and-Essay-Ch-6--10.jpg
Suppose a per-unit tax is imposed that reduces the number of units bought and sold in the market to 25 units.What is the size of the tax,and who bears the greater burden of the tax,buyers or sellers?

Question 30

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,who will bear the greater burden of the tax - the buyers,the sellers,or will the burden be shared equally?

Question 31

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,what price will buyers pay per unit after the tax is imposed?

Question 32

Figure 6-33
Refer to Figure 6-33.Suppose a $3 per-unit tax is imposed on the sellers of this good.How much is the burden of this tax on the buyers in this market?

Question 33

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,how much will sellers receive per unit after the tax is imposed?

Question 34

Figure 6-33
Refer to Figure 6-33.Suppose a $4 per-unit tax is imposed on the sellers of this good.How many units of this good will be sold after the tax is imposed?

Question 35

Scenario 6-1
Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation
Refer to Scenario 6-1.If the government set a price floor at $7,would there be a shortage or surplus,and how large would be the shortage/surplus?

Question 36

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,how many units will be bought and sold in the market after the tax is imposed?

Question 37

Figure 6-34
Refer to Figure 6-34.If the government imposes a tax of $6 per unit in this market,how much is the burden of the tax on the sellers in this market?

Question 38

Scenario 6-2
Suppose demand for a product is given by the equation and supply for the product is given by the equation
Refer to Scenario 6-2.Suppose the government sets a price ceiling at $12 for this product.Is this price ceiling binding,and what will be the size of the shortage/surplus in this market?

Question 39

Scenario 6-2
Suppose demand for a product is given by the equation and supply for the product is given by the equation
Refer to Scenario 6-2.Suppose the government sets a price ceiling at $17 for this product.Is this price ceiling binding,and what will be the size of the shortage/surplus in this market?

Question 40

Scenario 6-2
Suppose demand for a product is given by the equation and supply for the product is given by the equation
Refer to Scenario 6-2.What are the equilibrium price and equilibrium quantity in the market for this product?

Question 41

If the supply curve is more price elastic than the demand curve in a particular market,will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Question 42

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Question 43

Using a supply and demand diagram,show a labor market with a binding minimum wage.Use the diagram to show those who are helped by the minimum wage and those who are hurt by the minimum wage.

Question 44

If the demand curve is more price elastic than the supply curve,will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

Question 45

If the supply curve is more price elastic than the demand curve,will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

Question 46

If the demand curve is more price elastic than the supply curve in a particular market,will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?