FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Supply,demand,and Government Policies

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Figure 6-23 -Refer to Figure 6-23.The effective price received by sellers after the tax is imposed is

A) $8.
B) $10.
C) $14.
D) $18.

E) B) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

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

A) is relatively steep,and the supply curve is relatively flat.
B) is relatively flat,and the supply curve is relatively steep.
C) and the supply curve are both relatively flat.
D) and the supply curve are both relatively steep.

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

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

If the government levies a $2 tax per DVD on buyers of DVDs,then the price received by sellers of DVDs would

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

A tax on sellers increases the quantity of the good sold in the market.

Figure 6-4 -Refer to Figure 6-4.If the government set a price floor at $15,would there be a shortage or surplus,and how large would be the shortage/surplus?

Figure 6-9 -Refer to Figure 6-9.At which price would a price ceiling be nonbinding?

Workers determine the supply of labor,and firms determine the demand for labor.

Rent-control laws dictate

Figure 6-25 -Refer to Figure 6-25.In which market will the majority of the tax burden fall on buyers?

Table 6-3 The following table contains the demand schedule and supply schedule for a market for a particular good.Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market. -Refer to Table 6-3.Following the imposition of a price floor $2 above the equilibrium price,irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor.The resulting market price is

The minimum wage is more often binding for teenagers than for other members of the labor force.

Figure 6-4 -Refer to Figure 6-4.Which of the following statements is not correct?

In the United States,before OPEC increased the price of crude oil in 1973,there was

A tax on buyers decreases the quantity of the good sold in the market.

Figure 6-3 This figure shows the market demand and market supply curves for good Z. -Refer to Figure 6-3.Suppose a tax of $3 per unit is imposed on this market.What will be the new equilibrium quantity in this market?

The burden of a luxury tax most likely falls more heavily on sellers because demand is more elastic and supply is more inelastic.

FICA is an example of a payroll tax,which is a tax on the wages that firms pay their workers.

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 floor at $7,would there be a shortage or surplus,and how large would be the shortage/surplus?