iVat Chapter 5

A  The quantity demanded will increase, which will increase overall expenditures on the good/service.

B  The quantity demanded will decrease, which will decrease overall expenditures on the good/service.

C  Efficiencies will be realized with the third-party payer.

D  The quantity demanded will decrease and equilibrium quantity will stay the same.

A  The equilibrium price will decrease and equilibrium quantity will increase.

B  Both the equilibrium price and quantity will increase.

C  The equilibrium price will increase, but equilibrium quantity will remain unchanged.

D  The equilibrium quantity will decrease and the equilibrium price will decrease.

A  $5

B  $15

C  $10

D  $20

A  The decrease in wages can reduce consumption of goods/services in the economy, which can cause the demand curve in the labor market to shift to the left.

B  The equilibrium determination of wages can reduce consumption of goods/services in the economy, which can cause the demand curve in the labor market to shift to the right.

C  The change in wages can increase consumption of goods/services in the economy, which can cause the demand curve in the labor market to shift to the right.

D  The increase in wages can reduce consumption of goods/services in the economy, which can cause the demand curve in the labor market to shift to the left.

A  Create a surplus

B  Have no effect

C  Lead to unemployment

D  Lead to stagnation

E  Create shortages

A  The price must be the equilibrium price

B  The price must be above the equilibrium price

C  The supply curve must shift

D  Demand curve must shift

E  The price must below the equilibrium price

A  A shortage of labor supplied will occur

B  No effect

C  A surplus of labor supplied will occur

D  Financial turmoil

E  Shifting of the demand curve

A  Price floor

B  Equilibrating price

C  Price ceiling

D  Demand schedule

E  Tariff

A  Create a surplus

B  Will shift demand curve

C  Create a shortage

D  Will shift the supply curve

E  Have no effect

A  Equilibrium will occur

B  A shortage will occur

C  The demand curve shifts to the right

D  A surplus will occur

E  No effect on price or quantity demanded

A  The demand curve shifted to the left

B  The $60 price is above the equilibrium

C  The equilibrium price is $60

D  The $60 price is below the equilibrium

E  New parking technology is needed

A  The demand curve will shift rightward

B  A surplus will occur

C  The supply curve will shift leftward

D  It will have no effect on equilibrium price

A  At the equilibrium price

B  Above the equilibrium price

C  Below the equilibrium price

D  To the left of the equilibrium quantity

E  To the right of the equilibrium quantity

A  The equilibrium quantity decreased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

B  The equilibrium price decreased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

C  The equilibrium quantity increased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

D  The equilibrium price increased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.

A  There was neither excess supply nor excess demand.

B  Excess demand initially, but then it changed to excess supply.

C  Excess demand

D  Excess supply