chapter 4 sections 4 and 5 quiz

6 July 2024
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question
The imposition of a price ceiling on a market often results in:
answer
a shortage.
question
Assume a price floor is imposed at the current equilibrium price in the market for lettuce. If the demand for lettuce then increases:
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the quantity of lettuce supplied will increase.
question
Which of the below is true?
answer
A. A binding price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market. B. Both price floors and price ceilings generally increase the quantity exchanged in the market. C. A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market. D. Both price floors and price ceilings generally reduce the quantity exchanged in the market*
question
A surplus will result whenever the:
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government imposes a price floor above the equilibrium price.
question
Which of the following best explains the source of consumer surplus for Good A?
answer
Many consumers would be willing to pay more than the market price for some units of Good A.
question
eteris paribus, an increase in the price of a good will cause the:
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consumer surplus derived from the good to decrease.
question
Graphically, consumer surplus is measured by:
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the area below the demand curve, but above the market price
question
Which of the following is an example of an unintended consequence?
answer
a price ceiling on gasoline that causes a gas shortage
question
Consumer surplus is:
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the difference between what consumers are willing to pay and what they are required to pay for a good.
question
If the demand for apples is highly elastic and the supply is highly inelastic, then if a tax is imposed on apples it will be paid:
answer
largely by the sellers of apples