Question 1

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?

Accepted Answer

The price ceiling will not be ...

Question 2

Figure 6-25 
-Refer to Figure 6-25. The burden of the tax on buyers is

Accepted Answer

A)  $1 per unit.
B)  $1.50 per unit.
C)  $2 per unit.
D)  $3 per unit.E) All of the above
F) None of the above

Question 3

A tax on sellers shifts the supply curve but not the demand curve.

Accepted Answer

A) True 
 B)False

Question 4

A tax burden falls more heavily on the side of the market that is less elastic.

Accepted Answer

A) True 
 B)False

Question 5

Figure 6-35 
-Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units.

Accepted Answer

A) True 
 B)False

Question 6

Figure 6-28 
-Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Accepted Answer

A)  $4
B)  between $4 and $7
C)  between $7 and $10
D)  $10E) C) and D)
F) B) and C)

Question 7

To say that a price ceiling is binding is to say that the price ceiling

Accepted Answer

A)  results in a shortage.
B)  is set below the equilibrium price.
C)  causes quantity demanded to exceed quantity supplied.
D)  All of the above are correct.E) None of the above
F) B) and D)

Question 8

Figure 6-4 
-Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Accepted Answer

A)  binding price ceiling that creates a shortage.
B)  non-binding price ceiling that creates a shortage.
C)  binding price floor that creates a surplus.
D)  non-binding price floor that creates a surplus.E) B) and C)
F) All of the above

Question 9

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?

Accepted Answer

There woul...

Question 10

Figure 6-23 
-Refer to Figure 6-23. Which of the following is correct?

Accepted Answer

A)  The entire burden of the tax falls on sellers, and none of the burden of the tax falls on buyers.
B)  One-third of the burden of the tax falls on buyers, and two-thirds of the burden of the tax falls on sellers.
C)  One-half of the burden of the tax falls on buyers, and one-half of the burden of the tax falls on sellers.
D)  Two-thirds of the burden of the tax falls on buyers, and one-third of the burden of the tax falls on sellers.E) All of the above
F) C) and D)

Question 11

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?

Accepted Answer

A price ceiling set ...

Question 12

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Accepted Answer

A)  demand, raising both the equilibrium price and quantity in the market for artificially-sweetened beverages.
B)  demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially-sweetened beverages.
C)  supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially-sweetened beverages.
D)  supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially-sweetened beverages.E) A) and B)
F) A) and D)

Question 13

Minimum wage laws

Accepted Answer

A)  may encourage some teenagers to drop out and take jobs.
B)  create labor shortages.
C)  have the greatest impact in the market for skilled labor.
D)  All of the above are correct.E) A) and B)
F) B) and C)

Question 14

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Accepted Answer

A)  and the effective price received by sellers both increase.
B)  increases, but the effective price received by sellers decreases.
C)  decreases, but the effective price received by sellers increases.
D)  and the effective price received by sellers both decrease.E) B) and D)
F) A) and B)

Question 15

A minimum wage that is set above a market's equilibrium wage will result in an excess

Accepted Answer

A)  demand for labor, that is, unemployment.
B)  demand for labor, that is, a shortage of workers.
C)  supply of labor, that is, unemployment.
D)  supply of labor, that is, a shortage of workers.E) A) and B)
F) A) and C)

Question 16

If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $1.50, then the price ceiling is a binding constraint on the market.

Accepted Answer

A) True 
 B)False

Question 17

Define a price floor.

Accepted Answer

A price floor is a l...

Question 18

​The incidence of a tax is

Accepted Answer

A)  ​always determined by the demand side of the market.
B)  ​always determined by the supply side of the market.
C)  ​always determined by the interaction of the demand and supply side of the market..
D)  ​always determined by which side of the market the government imposes the tax on.E) B) and D)
F) A) and B)

Question 19

If a price ceiling is not binding, then it will have no effect on the market.

Accepted Answer

A) True 
 B)False

Question 20

Figure 6-19 
-Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Accepted Answer

A)  $3
B)  between $3 and $5
C)  between $5 and $7
D)  $7E) A) and B)
F) C) and D)

Exam 6: Supply, Demand, and Government Policies

The incidence of a tax is

Correct Answer
verified

A tax on sellers shifts the supply curve but not the demand curve.

Correct Answer
verified

Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Correct Answer
verified

A tax burden falls more heavily on the side of the market that is less elastic.

Correct Answer
verified

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?

Correct Answer
verified
There woul...
View Answer

Figure 6-25 -Refer to Figure 6-25. The burden of the tax on buyers is

Correct Answer
verified

Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Correct Answer
verified

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct Answer
verified

Figure 6-35 -Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units.

Correct Answer
verified

To say that a price ceiling is binding is to say that the price ceiling

Correct Answer
verified

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?

Correct Answer
verified
A price ceiling set ...
View Answer

Minimum wage laws

Correct Answer
verified

Figure 6-23 -Refer to Figure 6-23. Which of the following is correct?

Correct Answer
verified

A minimum wage that is set above a market's equilibrium wage will result in an excess

Correct Answer
verified

Correct Answer
verified
The price ceiling will not be ...
View Answer

Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Correct Answer
verified

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Correct Answer
verified

If a price ceiling is not binding, then it will have no effect on the market.

Correct Answer
verified

If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $1.50, then the price ceiling is a binding constraint on the market.

Correct Answer
verified

Define a price floor.

Correct Answer
verified
A price floor is a l...
View Answer

Exam 6: Supply, Demand, and Government Policies

​The incidence of a tax is

Correct AnswerverifiedShow Answer

A tax on sellers shifts the supply curve but not the demand curve.

Correct AnswerverifiedShow Answer

Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

A tax burden falls more heavily on the side of the market that is less elastic.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedThere woul...View AnswerShow Answer

Figure 6-25 -Refer to Figure 6-25. The burden of the tax on buyers is

Correct AnswerverifiedShow Answer

Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Correct AnswerverifiedShow Answer

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct AnswerverifiedShow Answer

Figure 6-35 -Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units.

Correct AnswerverifiedShow Answer

To say that a price ceiling is binding is to say that the price ceiling

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA price ceiling set ...View AnswerShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

Figure 6-23 -Refer to Figure 6-23. Which of the following is correct?

Correct AnswerverifiedShow Answer

A minimum wage that is set above a market's equilibrium wage will result in an excess

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe price ceiling will not be ...View AnswerShow Answer

Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Correct AnswerverifiedShow Answer

If a price ceiling is not binding, then it will have no effect on the market.

Correct AnswerverifiedShow Answer

If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $1.50, then the price ceiling is a binding constraint on the market.

Correct AnswerverifiedShow Answer

Define a price floor.

Correct AnswerverifiedA price floor is a l...View AnswerShow Answer

The incidence of a tax is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There woul...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A price ceiling set ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The price ceiling will not be ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A price floor is a l...
View Answer