13. If the quantity demanded for a product exceeds the quantity supplied the market price will rise until (Points : 1)
the quantity demanded equals the quantity supplied. The product will then no longer be scarce.
quantity demanded equals quantity supplied. The equilibrium price will then be greater than the market price.
only wealthy consumers will be able to afford the product.
quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.17. A tax is imposed on employers and workers that are used to fund Social Security and Medicare. This tax is sometimes referred to as (Points : 1)
the Income Security Tax.
the federal income tax.
the payroll tax.
19. Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone? (Points : 1)
20. The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called (Points : 1)
the substitution effect.
the income effect.
21. Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product, (Points : 1)
sellers bear the entire burden of the tax.
the tax burden will be shared among the government, buyers and sellers.
buyers bear the entire burden of the tax.
the tax burden will be shared by buyers and sellers.
23. Consider the following pairs of items:
Which of the pairs listed will have a positive cross-price elasticity? (Points : 1)
a and b only
c and d only
a, b, and c only
24. The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $6.60 per hour to $7.00. Using the midpoint formula, calculate the approximately change in the will the quantity supplied of teenage labor. (Points : 1)
There is insufficient information to answer the question.
26. Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as it desires. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor. What does this indicate about the supply of janitorial services curve? (Points : 1)
Supply is unit price elastic.
Supply is perfectly price elastic.
Supply is perfectly price inelastic.
Supply is relatively price inelastic.
27. When demand is unit price elastic, a change in price causes total revenue to stay the same because (Points : 1)
the percentage change in quantity demanded exactly offsets the percentage change in price.
buyers are buying the same quantity.
total revenue never changes with price changes.
the change in profit is offset by the change in production cost.