Microeconomics Test 2 example #28673

When a payroll tax is enacted, the wage received by workers

Refer to Figure 6-18. The per-unit burden of the tax on sellers is

Refer to Figure 6-18. The per-unit burden of the tax on buyers is

Refer to Figure 6-18. The amount of the tax per unit is

Refer to figure 6-18. The price that buyers pay after the tax is imposed is

Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

The term tax incidence refers to

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

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Rent control

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

The goal of rent control is to

Refer to Figure 6-7. Which of the following price controls would cause a surplus of 20 units of the good?

Refer to Figure 6-7. Which of the following price controls would cause a shortage of 20 units of the good?

Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Refer to figure 6-7. For a price ceiling to be binding in this market, it would have to be set at

Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the

When a binding price floor is imposed on a market,

A price floor will be binding only if it is set

A binding price floor (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price.

A price floor is

Refer to Figure 6-2. The price ceiling causes quantity

Refer to Figure 6-2. The price ceiling

Refer to figure 6-2. The price ceiling

A binding price ceiling (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price.

When a binding price ceiling is imposed on a market to benefit buyers,

If a price ceiling is not binding, then

A legal maximum on the price at which a good can be sold is called a price

In a competitive market free of government regulation,

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

Elasticity is

The price elasticity of demand for a good measures the willingness of

Demand is said to be inelastic if

Demand is elastic if the price elasticity of demand is

Goods with many close substitutes tend to have

For a good that is a necessity, demand

Other things equal, the demand for a good tends to be more inelastic, the

The demand for grape-flavored Hubba Bubba bubble gum is likely

The midpoint method is used to compute elasticity because it

Suppose the price of a bag of frozen chicken nuggets decreases from $6.50 to $5.75 and, as a result, the quantity of bags demanded increases from 600 to 800. Using the midpoint method, the price elasticity of demand for frozen chicken nuggets in the given price range is

When the price of a good is $5, the quantity demanded is 120 units per month; when the price is $7, the quantity demanded is 100 units per month. Using the midpoint method, the price elasticity of demand is about

If the price elasticity of demand for a good is 5, then a 10 percent increase in price results in a

As we move downward and to the right along a linear, downward-sloping demand curve,

For a horizontal demand curve,

Demand is said to have unit elasticity if the price elasticity of demand is

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owner is only interested in increasing revenue, she should

The price elasticity of supply measures how responsive

As price elasticity of supply increases, the supply curve

Economists compute the price elasticity of demand as the

There are very few, if any, good substitutes for automotive tires. Therefore, the demand for automotive tires would tend to be

When the price of a bracelet was $28 each, the jewelry shop sold 128 per month. When it raised the price to $32 each, it sold 112 per month. Using the midpoint method, the price elasticity of demand for bracelets is

Generally, a firm is more willing and able to increase quantity supplied in response to a price change when

Frequently, in the short run, the quantity supplied of a good is

If sellers do not adjust their quantity supplied at all in response to a change in price, the price elasticity of supply is

For a vertical demand curve,

Refer to figure 5-12. Using the midpoint method, the price elasticity of demand between point X and point Y is

Refer to figure 5-12. Using the midpoint method, the price elasticity pf demand between point Y and point Z is

Refer to figure 5-12. If the price decreased from $36 to $12, total revenue would

Refer to figure 5-13. Between point A and point B, price elasticity of demand using the midpoint method is equal to

Refer to figure 5-13. Between point A and point B on the graph, demand is

Refer to figure 6-5. If the solid horizontal line on the graph represents a price ceiling, then the price ceiling is

Refer to Figure 6-5. If the solid horizontal line on the graph represents a price floor, then the price floor is

Refer to figure 6-5. Suppose the market is initially in equilibrium. Then the government imposes a price control, as represented by the solid horizontal line on the graph. If the price control is a price floor, then the price control

Refer to figure 6-5. If government imposes a price floor at $9, then the price floor causes

Refer to figure 6-6. Which of the following price ceilings would be binding in this market?

Refer to figure 6-6. Which of the following price floors would be binding in this market?

Refer to figure 6-6. If the government imposes a price ceiling of $8 on this market, then there will be

Refer to figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Refer to figure 6-6. If the government imposes a price floor of $6 on this market, then there will be

Refer to figure 6-6. If the government imposes a price floor of $10 on this market, then there will be

Refer to figure 6-6. In which of the following cases would sellers have to develop a rationing mechanism?

Refer to figure 6-14. If the horizontal line on the graph represents a price ceiling, then the price ceiling is

Refer to figure 6-14. If the horizontal line on the graph represents a price floor, then the price floor is

Refer to figure 6-16. In this market, a minimum wage of $7.25 is

Refer to figure 6-16. In this market, a minimum wage of $2.75 is

Refer to figure 6-16. In this market, a minimum wage of $7.25 creates a labor

Refer to to figure 6-16. In this market, a minimum wage of $2.75 creates a labor

Refer to figure 6-22. The equilibrium price in the market before the tax is imposed is

Refer to figure 6-22. The price paid by buyers after the tax is imposed is

Refer to figure 6-22. The effective price sellers receive after the tax is imposed is

Refer to figure 6-22. The amount of the tax per unit is

Refer to figure 6-22. Buyers pay how much of the tax per unit?

Refer to figure 6-22. Sellers pay how much of the tax per unit?

Refer to figure 6-22. How much tax revenue does this tax generate for the government?