Chapter 4: Q. 13 (page 104)
What is the “price” commonly called in the labor
market?
Price is commonly called Wage.
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In the financial market, what causes a movement along the demand curve? What causes a shift in the demand
curve?
Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?
Identify the most accurate statement.
A price floor will have the largest effect if it is set:
a. substantially above the equilibrium price. b. slightly above the equilibrium price.
c. slightly below the equilibrium price.
d. substantially below the equilibrium price.
Sketch all four of these possibilities on a demand and supply diagram to illustrate your answer
If a usury law limits interest rates to no more than 35%, what would the likely impact be on the amount of loans
made and interest rates paid?
A price ceiling will have the largest effect:
a. substantially below the equilibrium price. b. slightly below the equilibrium price.
c. substantially above the equilibrium price. d. slightly above the equilibrium price.
Sketch all four of these possibilities on a demand and supply diagram to illustrate your answer
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