A price restriction that tells suppliers the minimum price they can sell their goods for is also known as A) a price ceiling. B) a quota. C) a price floor. D) deadweight loss. ANSWER A
Date: September 9th, 2020
Repealing a tariff will likely A) increase the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. B) reduce the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. C) reduce the amount produced abroad, reduce the price domestically, and reduce the quantity purchased domestically. […]
Date: September 9th, 2020
If the demand curve is horizontal and the supply curve is vertical, shifts of the supply curve will lead to A) changes in the equilibrium quantity only. B) changes in the equilibrium price only. C) changes in both the equilibrium price and quantity. D) changes in the quantity demanded only. ANSWER A
Date: September 9th, 2020
Suppose a market is currently at equilibrium. A leftward shift of the demand curve would cause A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity. ANSWER D […]
Date: September 9th, 2020
When “rent controls” result in a shortage of housing, landlords A) use criteria other than price to allocate housing. B) lower the price to allocate the housing. C) attempt to attract renters. D) None of the above. ANSWER A
Date: September 9th, 2020
When two goods are complements, a shock that lowers the price of one good causes the price of the other good to A) remain unchanged. B) decrease. C) increase. D) change in an unpredictable manner. ANSWER C
Date: September 9th, 2020
A leftward shift of the supply curve will lead to an A) increase in equilibrium price. B) excess supply at the old equilibrium price. C) increase in quantity supplied. D) All of the above. ANSWER A
Date: September 9th, 2020
If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price, A) there will be excess demand. B) there will be excess supply. C) the curves will shift to make a new equilibrium at the regulated price. D) None of the above. ANSWER A
Date: September 9th, 2020
Agricultural price supports are A) floors. B) ceilings. C) quantity quotas. D) taxes. ANSWER A
Date: September 9th, 2020
Suppose that government decides to create a license for widget makers. Only licensed widget makers are allowed to produce widgets. Moreover, only half of the current widget producers are eligible to obtain the license. What will happen with the supply curve of widgets? A) It will not change. B) It will shift to the left. […]
Date: September 9th, 2020
