Chapter 4 Post Quiz
Applications of Supply and Demand

Multiple Choice Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Price elasticity of demand	a. Perfectly inelastic.
	2. price-inelastic demand	b. P x Q.
	3. Vertical demand curve	c. Result in a reduction in supply, an increase in price, and higher revenues for farmers.
	4. Horizontal demand curve	d. Measures the change in quantity demanded of a good given a change in the price of that good.
	5. TR	e. A percentage change in quantity supplied divided by a percentage change in price.
	6. Price discrimination	f. Perfectly elastic.
	7. Price elasticity of supply	g. 1 percent increase in price that results in a less than 1 percent decrease in quantity demanded.
	8. Agricultural production restrictions	h. Can be shown by shifting the supply curve upward.
	9. Imposition of a tax	i. The practice of charging different prices to different buyers.
	10. Imposition of a subsidy	j. The group that will bare the burden of a tax if demand is inelastic relative to supply.
	11. Consumers	k. Can be shown by shifting the supply curve downward.
	12. Producers	l. Associated with an increase in the minimum wage.
	13. Unemployment increase	m. The group that will bare the burden of a tax if supply is inelastic relative to demand.
	14. Price ceilings	n. Will generally lead to shortages.
	15. Price increase	o. Will result in an increase in total revenue when demand is price inelastic.