An ad valorem tariff on imports is
Assume that peanut butter is an inferior good. Which of the following statements describes what is meant by an "inferior good" in economics.
When the price of cheddar cheese increased by 14 percent, the quantity demanded for cheddar cheese decreased by 22 percent. Therefore, we can conclude that
The demand for a product becomes more inelastic as the product
You know that the supply of tennis rackets decreased and the demand for tennis rackets increased, but you do not know the magnitude of the changes. Compared to the original equilibrium price and quantity (before the change), what can you say for certain?
Say that the original supply curve for avocados is the curve labeled S and the demand curve for avocados is the curve labeled D. If the supply curve moved from S to S1 and the demand curve did not move, at the new equilibrium we could conclude that
Say that the original supply curve for avocados is the curve labeled S and the demand curve for avocados is the curve labeled D. Assuming that avocados are a normal good, which of the following might explain a shift of the demand curve from D1 to D?
Say that the original supply curve for avocados is the curve labeled S and the demand curve for avocados is the curve labeled D. Say that the price of avocados in the United States rose from P2 to P1 and the quantity of avocados decreased from Q2 and Q1. Which of the following would best explain this?
The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called
Assume that hot dogs and hamburgers are substitutes. If the price of hamburger increased, the demand curve for hot dogs would
Assume the graph shows the supply and demand for cheese. Assume that the price per pound of cheese is measured on the vertical axis and the quantity of cheese is measured on the horizontal axis. If the government made it illegal for the price of cheese to fall below $8 per pound,
Assume the graph shows the supply and demand for cheese. Assume that the price per pound of cheese is measured on the vertical axis and the quantity of cheese is measured on the horizontal axis. Assume the market clears at the equilibrium price and quantity. According to the graph, what is the amount of producer and consumer surplus combined?
State University makes this announcement, "We are going to raise tuition fees because we need to increase tuition revenues to the university to make up for losses in government funding!" From this statement we that State University is assuming that
Which of the following is / are true?
I. A price ceiling causes a shortage if the price ceiling is below equilibrium price.
II. A price floor causes a surplus if the price floor is above the equilibrium price.
III. A price floor causes a surplus if the price floor is below the equilibrium price.
A group of young scholars is discussing a recent increase in the price of cheeseburgers in the area. Peyton thinks the price increase is due to an increase in the utility people receive from eating cheeseburgers. Margaret believes it is because more people are eating healthy salads instead of burgers. Richard is certain that it is because several burger restaurants in the area have recently closed down. Whose analysis could be correct?
The chief determinate of the price elasticity of supply of a product is
Quantity Demanded (pounds) | Price (per pound) | Quantity Supplied (pounds) |
200 | $4.40 | 800 |
250 | $4.20 | 700 |
300 | $4.00 | 600 |
350 | $3.80 | 500 |
400 | $3.60 | 400 |
450 | $3.40 | 300 |
500 | $3.20 | 200 |
If a legal price floor is established at $4.20, there will be a
The amount of the excise tax paid by the consumer is
Assume that the US imposes a quota on German cars. Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of cars in the United States will most likely ___________, and the equilibrium price of cars in Germany will most likely ___________.
Less quantity in the US, so the price will rise.
All of those cards that Germany WOULD have sent to the US, will sit in Germany, causing the supply to rise in Germany, which causes the price to fall in Germany.
If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the above model most likely would be
A student organization is formed at Big State University to protest against high rent prices for apartments near campus. This organization is planning a meeting with the dean and president of the college. Which best describes the policy the student organization will fight for?
A chicken farmer in North Carolina decides to raise the price of her chickens by 19% over what the prevailing market price equals. If the demand for chickens is perfectly elastic, this chicken farmer's quantity demanded will
The 1990 "Yacht Tax" caused a large deadweight loss because demand for luxury yachts made in the the US is
The market for grapes is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound, then