ECN 211 FINAL EXAM Questions with 100% Verified Correct Answers Graded A++ When income increases... - Correct Answer demand for inferior goods decrease and demand for normal goods increase price change causes a movement along - Correct Answer the demand curve (demand increase=right demand decrease=left) market quantity demand - Correct Answer sum of all individual demands What would cause a supply curve to shift right? - Correct Answer increase in supply (example: improvement in production technology) a competitive market... - Correct Answer has many buyers and sellers, no single buyer or seller can influence the price when an input price decreases - Correct Answer supply for the good made increases A movement downward and to the left along a supply curve is - Correct Answer a decrease in the quantity supplied caused by a decrease in the price an increase in the number of sellers causes - Correct Answer an increase in the market supply = right shift market quantity supplied - Correct Answer sum of all individual supplies supply curve could shift - Correct Answer in response to a change in the expected future price surplus - Correct Answer A situation in which quantity supplied is greater than quantity demanded 1 / 2
shortage - Correct Answer A situation in which quantity demanded is greater than quantity supplied When demand increases and supply decreases, - Correct Answer equilibrium price rises When demand decreases and supply increases, - Correct Answer equilibrium price falls price ceiling - Correct Answer a maximum price that can be legally charged for a good or service price floor - Correct Answer a minimum price for a good or service When supply is more elastic than demand - Correct Answer buyers bear most of the tax burden When demand is more elastic than supply - Correct Answer sellers bear most of the burden of the tax a payroll tax has the effect of - Correct Answer increasing the wages paid by firms and decreasing the wages received by workers.A binding price ceiling - Correct Answer set below the market price (equilibrium) The tax per unit is - Correct Answer the difference between the price the buyers pay after the tax and the price the sellers receive after the tax The per-unit burden of the tax on sellers is - Correct Answer the difference between the price below the equilibrium and at the equilibrium burden of tax is dictated by - Correct Answer the relative elasticity of supply and demand Rent control is an example of - Correct Answer price ceiling
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