Chapter 6 : ECON 2

When the government imposes a binding price floor, it causes

In a market with a binding price ceiling, an increase in the ceiling will ________ the quantity supplied, ________ the quantity demanded, and reduce the ________.

A $1 per unit tax levied on consumers of a good is equivalent to

Which of the following would increase quantity supplied, decrease quantity demanded, and increase the price that consumers pay?

Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay?

When a good is taxed, the burden of the tax falls mainly on consumers if

Suppose the government imposes a price ceiling of $3 on this market. What will be the size of the shortage in this market?

Which of the following price ceilings would be binding in this market?

Suppose that the demand for light bulbs is inelastic, and the supply of light bulbs is elastic. A tax of $2 per bulb levied on light bulbs will increase the price paid by buyers of light bulbs by

If a tax is imposed on a market with inelastic supply and elastic demand, then

A tax burden falls more heavily on the side of the market that

Which of the following is not correct? In a 2006 survey of Ph.D. economists,

The U.S. Congress first instituted a minimum wage in

A minimum wage that is set below a market's equilibrium wage will

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

A price ceiling will be binding only if it is set

If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would

If a nonbinding price ceiling is imposed on a market, then the

If a price ceiling is not binding, then

A tax imposed on the sellers of a good will lower the

A tax imposed on the sellers of a good will raise the

A tax on the sellers of coffee will increase the price of coffee paid by buyers,

When a tax is placed on the sellers of a product, buyers pay

If the government removes a tax on a good, then the price paid by buyers will

If the government removes a tax on a good, then the quantity of the good sold will

A tax imposed on the sellers of a good will

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

The incidence of a tax falls more heavily on

Which of the following price floors would be binding in this market?

Suppose the government imposes a price floor of $3 on this market. What will be the size of the surplus (or shortage) in this market?

The tax burden will fall most heavily on sellers of the good when the demand curve

Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes is inelastic, and the supply of cigarettes is elastic. If a tax were levied on the sellers of both of these commodities, we would expect that the burden of

The buyers will bear a higher share of the tax burden than sellers if the demand is

In which market will the majority of the tax burden fall on buyers?

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