Econ Modules 5-9

If the government established a quota of 1000 in this market (on graph), the quota rent would be

$4

If the government established a quota of 1000 in this market (on graph), the supply price would be

$4

If the government established a quota of 1000 in this market (on graph), the demand price would be

$8

Refer to the graph provided. If the government establishes a minimum wage at $10, how many workers will benefit from the higher wage?

50

Refer to the graph for question 4. With a minimum wage of $10, how many workers are unemployed (would like to work, but are unable to find a job)?

60

Which of the following would decrease the effect of a quota on a market?

A decrease in demand

Refer to the graph provided. A price floor is set at $5 will result in

A surplus of 100 units

Which of the following will lead to an increase in the equilibrium price of product "X"

An increase in the price of machinery used to produce product "X"

Effective price ceilings are inefficient because they

Do all of the above

Quotas lead to which of the following? I. inefficiency due to missed opportunities II. incentives to evade or break the law III. a surplus in the market

I and II

If an increase in income leads to a decrease in demand, the good is

Inferior

A decrease in the price of butter would most likely decrease the demand for

Margarine

To be effective a price ceiling must be set

None of the above

Which of the following is certainly true if demand and supply increase at the same time

The equilibrium quantity will increase.

An increase in the demand for steak will lead to an increase in which of the following?

The supply of leather (a complement in production)

Which of the following will decrease the supply of good "X"

The wages of workers producing good "X" increase

Which of the following will increase the demand for disposable diapers

a new "baby boom"

A technological advance in textbook production will lead to which of the following

an increase in textbook supply

The equilibrium price will rise, but equilibrium quantity may increase, decrease, or stay the same if

demand increases and supply decreases

An increase in the number of buyers and a technological advance will cause

demand to increase and supply to increase

Which of the following describes what will happen in the market for tomatoes if a salmonella outbreak is attributed to tainted tomatoes

demand will decrease and price will decrease

Which of the following will occur if consumers expect the price of a good to fall in the coming months?

demand will decrease today

The market price of a good will tend to rise if

it is below the equilibrium price

Which of the following would increase demand for a normal good? A decrease in

the price of a complement

Which of the following is true at equilibrium

the quantity demanded is the same as the quantity supplied