Micro Econ Final Review Questions

The per-unit burden of the tax on buyers in $_____

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Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

A shortage of physicals develops

If a surplus exists in a market, then we know that the actual price is

Above the equilibrium price. and quantity supplied is greater than quantity demanded.

If the government removes a binding price ceiling form a market, then the price paid by buyers will

Increase, and the quantity sold in the market will increase

Given the information above, would U.S. and Japan agree to a one-for-one trade with each other?

Only U.S. would agree

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes,

The equilibrium price and quantity both increase

For a particular good, a 5 percent increase in price causes a 15 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

There are many substitutes for this good

A binding price floor will reduce a firm's total revenue.

When demand is elastic

If the cross-price elasticity of demand for two goods is -4.5, then

the two goods are complements