Excess quantity demanded may result from
A. a government-imposed maximum price below market equilibrium.
B. a government-imposed minimum price above market equilibrium.
C. an oversupply of output.
D. technological progress.
Answer: A
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In the 1870s,
a. cotton prices were declining. b. the Deep South became a food importing region. c. an increasing percentage of small farms specialized in cotton. d. black farmers devoted more of their land to cotton than white farmers. e. All of the above.
An equilibrium price is unaffected by nonprice factors
a. True b. False Indicate whether the statement is true or false
Justification of a government program based on the jobs that it will create rather than the merits of the program itself is known as the: a. law of unintended consequences. b. invisible hand
c. crowding out effect. d. broken window fallacy.
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.