A forest fire destroys a large housing area. Immediately after the fire, the price of housing _______. But after some time, the ______________ starts to increase and the price starts to ______________.

decreases; demand; rise
increases; supply; fall
decreases; supply; rise further
increases; demand; rise further

The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of £500 a month. The price of a rental unit ________ and the number of units rented _______.

increases by £100 per month; increases
increases by £500 per month; decreases
remains the same; remains the same
decreases by £100 per month; decreases

When an effective minimum wage is introduced, the number of hours of labour employed is determined by the ___________ and the __________.

demand for labour; minimum wage
demand for labour; supply of labour
supply of and demand for labour; the minimum wage
supply of labour; minimum wage

The table gives the demand and supply schedules for biscuits. The government now levies a £0.30 tax on biscuits. As a result, the price of a packet of biscuits increases by __________ and the tax revenue collected is ____________a week.

£0.20; £20
£0.20; £24
£0.10; £9
£0.30; £30

The more ______________, the larger is the amount of the tax on the good that the ___________ pays.

elastic the supply of a good; seller
inelastic the demand for a good; seller
elastic the demand for a good; seller
elastic the demand for a good; buyer

The figure illustrates the market for posters. The tax on a poster is __________ and the government's tax revenue from the sale of posters is _______________a month.

£0.35; £140
£0.50; £150
£0.35; £105
£0.35; £200

If the government increases the tax on CD players, _____________________.

the number of CDs purchased increases
the market becomes more efficient
the deadweight loss increases
the consumer surplus increases

If the penalty on sellers of a prohibited good is greater than the penalty on buyers of a prohibited good, then supply of the good will _______ by more than demand and the price of the good will _______.

increase; increase
decrease; decrease
decrease; increase
decrease; remain the same

Because most agricultural products have an _______ demand, a poor harvest in an unregulated market will _______ farm revenue.

elastic; increase
inelastic; increase
inelastic; decrease
elastic; decrease

The CAP takes the form of __________.

price ceilings set above the equilbrium price
price floors set above the equilbrium price
price ceilings set below the equilbrium price
price floors set below the equilbrium price