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If the equilibrium price of petrol is €1.00 per litre and the government places a price ceiling on petrol of €1.50 per litre, the result will be a shortage of petrol.

A price ceiling set below the equilibrium price causes a surplus.

A price floor set above the equilibrium price is a binding constraint.

The shortage of housing caused by a binding rent control is likely to be more severe in the long run when compared to the short run.

The minimum wage helps all teenagers because they receive higher wages than they would otherwise.

A 10 per cent increase in the minimum wage is more likely to raise unemployment among teenage workers than among mid-career professional workers

A price ceiling that is not a binding constraint today could cause a shortage in the future if demand were to increase and raise the equilibrium price above the fixed price ceiling.

A price floor in a market always creates a surplus in that market.

A €10 tax on football boots will always raise the price that the buyers pay for football boots by €10.

The ultimate burden of a tax falls most heavily on the side of the market that is less elastic.

If medicine is a necessity, the burden of a tax on medicine will probably fall more heavily on the buyers of medicine.

When we use the model of supply and demand to analyse a tax collected from the buyers, we shift the demand curve upward by the size of the tax.

A tax collected from buyers has an equivalent impact to a same size tax collected from sellers.

A tax creates a tax wedge between a buyer and a seller. This causes the price paid by the buyer to rise, the price received by the seller to fall, and the quantity sold to fall.

The government can choose to place the burden of a tax on the buyers in a market by collecting the tax from the buyers rather than the sellers.

For a price ceiling to be a binding constraint on the market, the government must set it

A binding price ceiling creates

Suppose the equilibrium price for apartments is €500 per month and the government imposes rent controls of €250. Which of the following is unlikely to occur as a result of the rent controls?

A price floor

Which of the following statements about a binding price ceiling is true?

Which side of the market is more likely to lobby government for a price floor?

The surplus caused by a binding price floor will be greatest if

Which of the following is an example of a price floor?

Which of the following statements is true if the government places a price ceiling on petrol at €1.50 per litre and the equilibrium price is €1.00 per litre?

Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?

Within the supply and demand model, a tax collected from the buyers of a good shifts the

Within the supply and demand model, a tax collected from the sellers of a good shifts the

Which of the following takes place when a tax is placed on a good?

When a tax is collected from the buyers in a market,

A tax of €1.00 per litre on petrol

The burden of a tax falls more heavily on the sellers in a market when

A tax placed on a good that is a necessity for consumers will likely generate a tax burden that

The burden of a tax falls more heavily on the buyers in a market when

Which of the following statements about the burden of a tax is correct?

For which of the following products would the burden of a tax likely fall more heavily on the sellers?