S D and government policy

When the government imposes a binding price floor,it causes.........

• the supply curve to shift to the left.

• the demand curve to shift to the right

• a shortage of the good to develop

• a surplus of the good to develop

In a market with a binding price ceiling, an increase in the ceiling will ________ the quantity supplied,________ the quantity demanded, and reduce the________.

• increase, decrease, surplus

• decrease, increase, surplus

• increase, decrease, shortage

• decrease, increase, shortage

A $1 per unit tax levied on consumers of a good isequivalent to________

• a $1 per unit tax levied on producers of the good

• a $1 per unit subsidy paid to producers of the good

• a price floor that raises the good’s price by$1 per unit

• a price ceiling that raises the good’s price by$1 per unit

Which of the following would increase quantitysupplied, decrease quantity demanded, and increasethe price that consumers pay?

• the imposition of a binding price floor

• the removal of a binding price floor

• the passage of a tax levied on producers

• the repeal of a tax levied on producers

Which of the following would increase quantity supplied, increase quantity demanded, and decreasethe price that consumers pay?

• the imposition of a binding price floor

• the removal of a binding price floor

• the passage of a tax levied on producers

• the repeal of a tax levied on producers

When a good is taxed, the burden of the tax fallsmainly on consumers if

• the tax is levied on consumers

• the tax is levied on producers

• supply is inelastic, and demand is elastic

• supply is elastic, and demand is inelastic

____________the manner in which the burden of a tax is shared among participants in amarket

___________________a legal minimum on the price at which a good can be sold

_________________a legal maximum on the price at which a good can be sold