Question 1

The price received by sellers in a market will increase if the government

Accepted Answer

A)   decreases a binding price floor in that market.
B)   increases a binding price ceiling in that market.
C)   increases a tax on the good sold in that market.
D)   imposes a binding price ceiling in that market.E) B) and C)
F) B) and D)

Question 2

Figure 6-26 
-Refer to Figure 6-26. The price paid by buyers after the tax is imposed is

Accepted Answer

A)   $16.
B)   $8.
C)   $14.
D)   $12.E) B) and C)
F) A) and D)

Question 3

Figure 6-4 
-Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Accepted Answer

A)   binding price ceiling that creates a shortage.
B)   non-binding price ceiling that creates a shortage.
C)   binding price floor that creates a surplus.
D)   non-binding price floor that creates a surplus.E) A) and B)
F) A) and C)

Question 4

Figure 6-24 
-Refer to Figure 6-24. In the after-tax equilibrium, government collects

Accepted Answer

A)   $1,440 in tax revenue; of this amount, $960 represents a burden on buyers and $480 represents a burden on sellers.
B)   $1,440 in tax revenue; of this amount, $720 represents a burden on buyers and $720 represents a burden on sellers.
C)   $1,680 in tax revenue; of this amount, $1,260 represents a burden on buyers and $420 represents a burden on sellers.
D)   $1,680 in tax revenue; of this amount, $840 represents a burden on buyers and $840 represents a burden on sellers.E) All of the above
F) A) and C)

Exam 6: Supply, Demand, and Government Policies

The price received by sellers in a market will increase if the government

Correct Answer
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Figure 6-26 -Refer to Figure 6-26. The price paid by buyers after the tax is imposed is

Correct Answer
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Figure 6-24 -Refer to Figure 6-24. In the after-tax equilibrium, government collects

Correct Answer
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Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Correct Answer
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Exam 6: Supply, Demand, and Government Policies

The price received by sellers in a market will increase if the government

Correct AnswerverifiedShow Answer

Figure 6-26 -Refer to Figure 6-26. The price paid by buyers after the tax is imposed is

Correct AnswerverifiedShow Answer

Figure 6-24 -Refer to Figure 6-24. In the after-tax equilibrium, government collects

Correct AnswerverifiedShow Answer

Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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