Category: Prices, Wages & Taxes

A. both supply and demand are inelastic
B. demand is elastic, and supply are inelastic
C. both supply and demand are elastic
D. demand is inelastic, and supply is elastic

A. The shortage created by the price ceiling is greater in the short ran than in the long run.
B. The surplus created by the price ceiling is greater in the short run than in the long run
C. The surplus created by the price ceiling is greater in the long run than in the short run
D. The shortage created by the price ceiling is greater in the long run than in the short run

A. There may be long lines of buyers waiting for apartments
B. Landlords may discriminate among apartment renters
C. Landlords may be offered bribes to rent apartments
D. there will be a storage of housing
E. the quality of apartments will improve

A. demand curve downward by the size of the tax per unit.
B. supply curve downward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. supply curve upward by the size of the tax per unit

A. above the equilibrium price
B. below the equilibrium price
C. precisely at the equilibrium price
D. at any price because all price ceilings are binding constraints

A. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price
B. a surplus
C. a shortage
D. an equilibrium

A. always determines the price at which a good must be sold
B. sets a legal maximum on the price at which a good can be sold
C. is not a binding constraint if it is set above the equilibrium price
D. sets a legal minimum on the price at which a good can be sold

A. Clothing
B. food
C. housing
D. entertainment

A. the tax burden falls most heavily on the buyers.
B. the buyers bear the burden of the tax
C. the sellers bear the burden of the tax
D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers