Supply and Demand: Applications and Extensions

# Macroeconomics Private and Public Choice

## Quiz 4 :Supply and Demand: Applications and Extensions

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Figure 4-14 -Figure 4-14 depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?
Free
Multiple Choice

E

Figure 4-14 -In Figure 4-14, which of the following is true at the price ceiling, P?
Free
Multiple Choice

B

Figure 4-15 -In Figure 4-15, suppose a price floor is established at $20.00. What is the result? Free Multiple Choice Answer: Answer: E Figure 4-16 -Refer to Figure 4-16. Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region. If a living wage of$10 per hour is established in the market pictured here, we would expect
Multiple Choice
Figure 4-17 -Refer to Figure 4-17. If the government imposes a price ceiling in this market at a price of $5.00, the result would be a Multiple Choice Answer: Figure 4-17 -Refer to Figure 4-17. Which of the following price controls would cause a shortage of 10 units of the good? Multiple Choice Answer: Figure 4-17 -Refer to Figure 4-17. Suppose a price floor of$7.00 is imposed. As a result,
Multiple Choice
Figure 4-17 -Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result, Multiple Choice Answer: Figure 4-18 -Refer to Figure 4-18. If the government imposes a price ceiling of$2.00 in this market, the result is a
Multiple Choice
Figure 4-18 -Refer to Figure 4-18. In this market, which of the following price controls would be binding?
Multiple Choice
Figure 4-18 -Refer to Figure 4-18. The price of the good would continue to serve as the rationing mechanism if
Multiple Choice
Figure 4-19 -Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2,
Multiple Choice
Figure 4-19 -Refer to Figure 4-19. When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2, the resulting quantity of gasoline that is bought and sold is
Multiple Choice
Figure 4-20 -Refer to Figure 4-20. The equilibrium price in the market before the tax is imposed is
Multiple Choice
Figure 4-20 -Refer to Figure 4-20. As the figure is drawn, who sends the tax payments to the government?
Multiple Choice
Figure 4-20 -Refer to Figure 4-20. The price that buyers pay after the tax is imposed is
Multiple Choice