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

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

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

B  Both the equilibrium price and quantity will increase.

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

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

A  $10

B  $5

C  $20

D  $15

A  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.

B  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.

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 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.

A  Lead to stagnation

B  Create a surplus

C  Lead to unemployment

D  Create shortages

E  Have no effect

A  The price must below the equilibrium price

B  The price must be above the equilibrium price

C  Demand curve must shift

D  The price must be the equilibrium price

E  The supply curve must shift

A  Financial turmoil

B  No effect

C  A surplus of labor supplied will occur

D  Shifting of the demand curve

E  A shortage of labor supplied will occur

A  Price floor

B  Equilibrating price

C  Tariff

D  Demand schedule

E  Price ceiling

A  Will shift the supply curve

B  Have no effect

C  Create a shortage

D  Will shift demand curve

E  Create a surplus

A  No effect on price or quantity demanded

B  A shortage will occur

C  Equilibrium will occur

D  A surplus will occur

E  The demand curve shifts to the right

A  The equilibrium price is $60

B  The $60 price is below the equilibrium

C  New parking technology is needed

D  The demand curve shifted to the left

E  The $60 price is above the equilibrium

A  The supply curve will shift leftward

B  It will have no effect on equilibrium price

C  The demand curve will shift rightward

D  A surplus will occur

A  To the right of the equilibrium quantity

B  Below the equilibrium price

C  Above the equilibrium price

D  At the equilibrium price

E  To the left of the equilibrium quantity

A  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.

B  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.

C  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.

D  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.

A  Excess demand

B  There was neither excess supply nor excess demand.

C  Excess supply

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