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 ______________.

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

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 _______.

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

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

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

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

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

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

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

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.

$0.50; $150
$0.35; $200
$0.35; $140
$0.35; $105

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

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

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

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

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

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

During years of bumper harvests, inventory holders will _______ their inventories and farm revenue will __________.

increase; increase
decrease; decrease
decrease; increase
increase; decrease

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