PRACTICUM for Chapter 6
Supply, Demand, and Government Policies
1. Refer to Figure 6-1. A binding price ceiling is shown in
a. panel (a) but not panel (b).
b. panel (b) but not panel (a).
c. both panel (a) and panel (b).
On the Advanced Placement exam, students are expected to analyze concurrent shifts in
the supply curve and the demand curve. This can create a problem if one analyzes the
effects of a shift in the demand curve and a shift in the supply curve solely by gra
Application: International Trade
1. An important factor in the decline of the U.S. textile industry over the past 100 or so years is
a. foreign competitors that could produce quality textile goods at low cost.
Consumers, Producers, and the Efficiency of Markets
1. The particular price that results in quantity supplied being equal to quantity demanded is the best price because it
a. maximizes costs of the seller.
b. maximizes t
Chapter 5- PRACTICUM
Elasticity and Its Applications
1. In general, elasticity is a measure of
a. the extent to which advances in technology are adopted by producers.
b. the extent to which a market is competitive.
c. how fast the price of