iVat Chapter 5

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

B  The quantity demanded will increase, which will increase 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 quantity will decrease and the equilibrium price will decrease.

B  Both the equilibrium price and quantity will increase.

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

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

A  $5

B  $10

C  $15

D  $20

A  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.

B  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.

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 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.

A  Lead to stagnation

B  Have no effect

C  Create shortages

D  Create a surplus

E  Lead to unemployment

A  The price must be above the equilibrium price

B  The price must be the equilibrium price

C  The supply curve must shift

D  The price must below the equilibrium price

E  Demand curve must shift

A  Financial turmoil

B  A shortage of labor supplied will occur

C  Shifting of the demand curve

D  A surplus of labor supplied will occur

E  No effect

A  Tariff

B  Equilibrating price

C  Demand schedule

D  Price ceiling

E  Price floor

A  Have no effect

B  Create a shortage

C  Will shift the supply curve

D  Create a surplus

E  Will shift demand curve

A  A surplus will occur

B  Equilibrium will occur

C  A shortage will occur

D  The demand curve shifts to the right

E  No effect on price or quantity demanded

A  The $60 price is above the equilibrium

B  The equilibrium price is $60

C  The demand curve shifted to the left

D  New parking technology is needed

E  The $60 price is below the equilibrium

A  It will have no effect on equilibrium price

B  A surplus will occur

C  The supply curve will shift leftward

D  The demand curve will shift rightward

A  Above the equilibrium price

B  Below the equilibrium price

C  To the left of the equilibrium quantity

D  To the right of the equilibrium quantity

E  At the equilibrium price

A  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.

B  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.

C  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.

D  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.

A  Excess demand

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

C  There was neither excess supply nor excess demand.

D  Excess supply