unit 3 review - DVD players shifting to the right 6 Rent...

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1. What of the following will NOT cause an increase on demand for good X? a decrease in the price of good X 2. A good is inferior if_____________________. When income increases, demand decreases 3. A technological advance in the production of automobiles will___________________. Increase the supply of automobiles 4. A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two events on the summer market for gasoline? An increase in the price and an unpredictable change in the quantity 5. You notice that the price of DVD players falls and the quantity of DVD players sold increases. This set of observations can be the result of the _____________. Supply of
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Unformatted text preview: DVD players shifting to the right 6. Rent controls in New York City cause all of the following except ________________. An increase in the quantity supplied of rent-controlled apartments 7. A binding price floor causes_____. Both b and c 8. Although most economists agree that price floors and ceilings lead to inefficiency, governments continue to impose such price controls. A possible reason for this is ____. All the above 9. The “quota rent” refers to____. The difference between the demand price and the supply price at the quota limit 10. If an excise tax is imposed on automobiles and collected from consumers ___. The demand curve will shift downward by the amount of the tax...
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