econ 1200 exam 2

gasoline prices

50/50

in which of the following situations would supply be themost elastic

a furniture manifacturer is operating its factory 8 hours per day

increase in quantity supplied results in

a movement upward and to the right along the fixed supply curve

if the demand for a produce increases then we could expect equilibirum price

and equi quantity to both increase

a decrease in supply will cause the largest increase in price when

both supply and demand are inelastic

a tax on the buyers of cameras encourages

buyers to demand a smaller quantity of every price

In any economic system, scarce resources have to be allocated among competing uses. Market economies harness the forces of

credit cards to allocate scare resources

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

decrease in effective price of coffee recieved by sellers, and decrease the equi quantity of coffee

in response to a shortage caused by the imposition of binding price ceiling on a market

price will no longer the the mechanism that rations scarce resources long lines of buyer maydevelop sellers could ration the good or service accorrding to their own personal business

the price elasticity of supply measures how much

quantity supplied responds to changes in the price of the good

a drug interdiction program will

riase the price, reduce the quantitiy, increase revenues, increase crime

in a market with a binding price control

there is an imbalance between the qualtity supplied by sellers and the quantitity demanded

price controls are usually enacted

when policymakers believe that the market price of a good or service is unfair to buyers or sellers