Chapter 4 example #62469

If the relative price of one unit of good Y is 0.25 units of good Z, then it follows that the absolute price of good Z can be __________ and the absolute price of good Y can be __________.

If the relative price of one unit of good X is 5 units of good Y, then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

A shortage of kidneys (for transplants) results from

Refer to Exhibit 4-1. At the equilibrium price, ________ units of the good would be exchanged. With a price ceiling, _______ units of the good would be exchanged.

Refer to Situation 4-1. Because price controls were in effect at the time the embargo occurred, an economist would have most likely predicted that

Refer to Exhibit 4-3. Suppose that the seller creates a tie-in sale between goods X and Y. If P1 is a price ceiling on good X, the highest price buyers would be willing to pay for good Y is

Refer to Exhibit 4-1. How many fewer units are bought and sold because of the price ceiling than would have been bought and sold at the equilibrium price?

Refer to Exhibit 4-4. Which of the following statements is false? A. Graph (1): A price ceiling set at P2 would not have an impact on the market. B. Graph (2): As supply increases, equilibrium price remains constant.C. Graph (3): As demand increases, equilibrium quantity remains constant. D. Graph (4): As supply increases, equilibrium quantity increases.

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What has happened to the producers' surplus as a result of the imposition of the price floor?Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What has happened to the producers' surplus as a result of the imposition of the price floor?

The number of unskilled workers employed before and after an increase in the minimum wage is found to be the same. This means

Refer to Exhibit 4-1. Suppose the good shown is being sold at the $6 price ceiling. At a quantity of 75 units, what is the maximum per-unit price buyers would be willing to pay for a good "tied" to the good shown in the exhibit?

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What has happened to the consumers' surplus as a result of the imposition of the price floor?

Refer to Exhibit 4-4. Which of the following statements is false? A. Graph (1): A price ceiling set at P2 would not have an impact on the market. B. Graph (2): As supply increases, equilibrium price remains constant. C. Graph (3): As demand increases, equilibrium quantity remains constant. D. Graph (4): As supply increases, equilibrium quantity increases.

Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium the total surplus will equal

Refer to Exhibit 4-5. If a free market were allowed in the transplanted kidney market, then the equilibrium price would be P2. The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.

Refer to Exhibit 4-4. Which of the following is false? A. Graph (1): There would be a shortage of the good if a price floor is set at P3. B. Graph (2): As supply increases, equilibrium quantity remains constant. C. Graph (3): As demand increases, equilibrium price remains constant. D. Graph (4): As supply changes, equilibrium price stays the same.

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the change in the total surplus at the price floor, compared to at the equilibrium price?

Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the total surplus at PF?

Refer to Exhibit 4-3. If price P1 is a price ceiling, then

Jake is an excellent barber. However, all customers who come to him for a haircut must buy a bottle of shampoo. This type of arrangement is known as

Refer to Exhibit 4-6. Suppose the minimum wage is set at $7. The result will be

Refer to Exhibit 4-3. If price P2 is a price ceiling, thenv

The minimum wage is an example of a

A price ceiling set below the equilibrium price will

Refer to Exhibit 4-6. At a wage of $7, there will be a __________ of unskilled workers equal to __________ thousand workers.

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

If the minimum wage is set above the equilibrium wage, then

A price floor set above the equilibrium price will

Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound. If the price of butter rises to $3.90 and the price of margarine rises to $2.20, then the absolute price of butter has _______________ and the relative price of butter has _______________.

Refer to Situation 4-1. An economist would have most likely predicted that the oil embargo imposed in 1974 would result in a

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers, it follows that the absolute price of a dining room table is

Refer to Exhibit 4-11. Suppose that the government imposes a price floor in the market for good ABC at a price of $7. The result of the price floor would be a ____________ of ______ units of good ABC.

Refer to Exhibit 4-11. Suppose that the government imposes a price floor in the market for good ABC at a price of $7. How many fewer units would be bought and sold at the price floor compared to the number of units that would be bought and sold in a free market?

A price ceiling is a government-mandated

Refer to Situation 4-1. Before the oil embargo, the price ceiling on gasoline had no noticeable effect on the market. What is the most likely explanation for this?

If the current market price of good Z is below the equilibrium price of good Z

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the quantity of wheat purchased at PF?

One of the effects of a price floor (set above equilibrium price) is

Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $11. How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?

When the price of a good rises, the price is transmitting information indicating that the good has become relatively

At the minimum wage (set above the equilibrium wage),

Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. The minimum wage will result in a ___________ of ________ thousand unskilled workers.

Which of the following statements is true?

Refer to Exhibit 4-11. Suppose that the government imposes a price ceiling in the market for good ABC at a price of $4. The number of units that would be exchanged in the market for good ABC at the price ceiling would be _________ units.

Refer to Exhibit 4-1. The number of units bought and sold at the price ceiling is

Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many thousands of unskilled workers would be employed at the minimum wage?

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor, then the

Refer to Exhibit 4-3. If price P3 is a price ceiling, then

Price ceilings and price floors

Suppose the government sets a price floor that is above the equilibrium price for a given good. It can be said that at the price floor,

Suppose the government imposes a price ceiling above the equilibrium price of a given good. Which of the following is the most likely result?

Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium, the consumers' surplus will equal

Suppose that the price of peanut butter is $3 per pound and the price of almond butter is $5 per pound. If the price of peanut butter rises to $3.60 and the price of almond butter rises to $5.50, then the absolute price of peanut butter has _______________ and the relative price of peanut butter has _______________.

Refer to Exhibit 4-6. Suppose the minimum wage is set at $5. The result will be

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. How many fewer units of wheat will be sold at the price floor than at the equilibrium price?

If goods are not rationed according to price, if follows that

If the price of good X is $30 and the price of good Y is $5, it follows that the relative price of one unit of good X is approximately_____________ unit(s) of good Y.

There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to

Refer to Exhibit 4-3. Which of the following is true?

Suppose that the government sets a price floor in the market for milk at $2.15 per gallon of milk. If the equilibrium price of milk is $1.99, the result of the price floor will be a _____________ of milk and ____________ exchanges will be made with the price floor than would be made in a free market.

When the price of a good falls, the price is transmitting information indicating that the good has become relatively

Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $13. _________ units would be exchanged at the equilibrium price and ____________ units would be exchanged with the price ceiling in effect.

There are two goods in the economy: tea and rice. If the relative price of tea has increased it could be a result of

Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $10. _________ units would be exchanged in a free market, and ____________ units would be exchanged with the price ceiling in effect.

Exhibit 4-2 represents the orange juice market. The horizontal line at $2 shows a price ceiling imposed by the government. Which of the following statements is true at this price?

Which of the following would not result from a price ceiling (set below the equilibrium price)?

Refer to Exhibit 4-11. Suppose that the government imposes a price ceiling in the market for good ABC at a price of $4. The result of the price ceiling would be a ____________ of ______ units of good ABC.

Refer to Exhibit 4-7. How many unskilled workers do firms want to employ at the minimum wage?

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the

Refer to Exhibit 4-7. The number of unskilled workers who want to work at the minimum wage is

Refer to Situation 4-1. If no price controls had been in place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been

Exhibit 4-2 represents the orange juice market. The horizontal line represents a price ceiling imposed by the government. Which of the following is true?

In the market for a given product, when a price floor is set above the equilibrium price the result will be

A price floor is a government-mandated

Refer to Exhibit 4-3. If price P1 is a price floor, then

Exhibit 4-2 represents the orange juice market. The horizontal line represents a price ceiling imposed by the government. How many fewer units would be exchanged at the price ceiling compared to the number that would be exchanged at the equilibrium price?

Refer to Exhibit 4-3. The maximum (per-unit) amount buyers are willing to pay to purchase Q1 units is

Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $15. The number of units that would be exchanged in this market would be

Refer to Exhibit 4-3. Which of the following is true? A. Price P1 is the equilibrium price for good X. B. If price P1 is set as a price ceiling, the price ceiling will have an effect on the market for good X. C. If price P1 is set as a price floor, then it is the highest price that can legally be charged in the market for good X. D. If price P1 is set as a price floor, the price floor will have an effect on the market for good X.

Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium the producers' surplus will equal

Refer to Exhibit 4-11. Suppose that the government imposes a price ceiling in the market for good ABC at a price of $4. How many fewer units would be exchanged at the price ceiling than would be exchanged if the market for good ABC were a free market?

Refer to Exhibit 4-5. Suppose the government imposes a price ceiling at P = $0 for transplanted kidneys. The result will be a

If the price of good X is $100 and the price of good Y is $25, it follows that the relative price of one unit of good X is _____________ unit(s) of good Y.

If the price of good X is $100 and the price of good Y is $40, it follows that the relative price of one unit of good Y is ___________ unit(s) of good X

Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $10. The number of units that would be exchanged in this market would be

Suppose you live in New York City and the government has imposed price ceilings on apartment rental rates. You want to rent an apartment from Smith, who says that unless you buy the furniture in the apartment for $4,000, he cannot rent the apartment to you. The condition of buying the furniture could be considered

If the absolute price of a new car is $30,000 and the relative price of a laptop computer in terms of cars is 1/30 of a car, it follows that the absolute price of the laptop is

If the absolute price of a car is $20,000 and the relative price of a computer is 20 cars, it follows that the absolute price of a car is

A price floor (set above the equilibrium price) on rice will

Which of the following is false? A. When the U.S. government imposed price ceilings on gasoline, the result was a surplus of gasoline. B. First-come-first-served is a commonly used rationing device. C. When the U.S. government imposed price ceilings on gasoline, the result was a shortage of gasoline. D. If a price ceiling is imposed below the equilibrium price in a given market, the result is a shortage in that market.

Suppose that the government sets a price ceiling in the market for potatoes at $0.75 per pound of potatoes. If the equilibrium price of potatoes is $1.10, the result of the price ceiling will be a _____________ of potatoes and ____________ exchanges will be made with the price ceiling than would be made in a free market.

Refer to Situation 4-1. An economist would have most likely predicted that once price controls were abolished in the spring of 1974,

Price serves as

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the consumers' surplus at PF?

Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

Which of the following statement is false based on information presented in the textbook?

Refer to Exhibit 4-7. How many fewer persons work in the unskilled labor market at the minimum wage (WM) than at the equilibrium wage (W1)?

Which of the following is true? A. Buyers never prefer lower prices to higher prices. B. Buyers always prefer lower prices to higher prices C. Buyers prefer lower prices to higher prices, ceteris paribus. D. Buyers rarely prefer lower prices to higher prices.

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the producers' surplus at PF?

If the price of good X is $90 and the price of good Y is $30, it follows that the relative price of one unit of good Y is ___________ unit(s) of good X.