Micro Econ Final Review Questions
The per-unit burden of the tax on buyers in $_____
8
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