Government Intervention Quiz 2

In the indirect tax diagram, what is the impact on the price and quantity demanded when the supply curve shifts to the left?

• Price increases, quantity demanded increases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded decreases

In the subsidy diagram, what is the impact on the price and quantity demanded when the supply curve shifts to the right?

• Price increases, quantity demanded increases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded decreases

• Price decreases, quantity demanded increases

In the information provision diagram, what is the impact on the price and quantity demanded when the demand curve shifts to the left?

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded increases

• Price decreases, quantity demanded decreases

In the maximum price diagram, what is the impact on the price and quantity demanded when there is a movement along the demand and supply curves?

• Price decreases, quantity demanded decreases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded increases

• Price increases, quantity demanded decreases

In the minimum price diagram, what is the impact on the price and quantity demanded when there is a movement along the demand and supply curves?

• Price increases, quantity demanded increases

• Price decreases, quantity demanded decreases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded increases

In the elasticity of demand diagram, what is the impact on the price and quantity demanded when the demand curve becomes more elastic?

• Price increases, quantity demanded increases

• Price decreases, quantity demanded decreases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded increases

In the consumer surplus diagram, what is the impact on the price and quantity demanded when there is an increase in consumer surplus?

• Price decreases, quantity demanded decreases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded increases

• Price increases, quantity demanded decreases

In the producer surplus diagram, what is the impact on the price and quantity demanded when there is a decrease in producer surplus?

• Price increases, quantity demanded increases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded decreases

In the price ceiling diagram, what is the impact on the price and quantity demanded when there is a movement along the demand and supply curves?

• Price decreases, quantity demanded decreases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded increases

• Price increases, quantity demanded decreases

In the deadweight loss diagram, what is the impact on the price and quantity demanded when there is a decrease in deadweight loss?

• Price increases, quantity demanded increases

• Price decreases, quantity demanded increases

• Price increases, quantity demanded decreases

• Price decreases, quantity demanded decreases