Consider the market for housing. Suppose that after a decrease in consumer’s income, the price of houses fell down while the quantity of houses remained the same. Which of the following is a possible explanation for why this happened?

Which point(s) ________represent efficiency in the economy?

Suppose that producers agree with the government that $10 is too high because of the surplus in the market. According to this new agreement, the new price will be $8, but the government will still buy the entire excess supply to prevent the price from falling below $8.  Compared to the free market, the change in producer surplus from the policy is a gain equal to

The deadweight loss associated with the $4 subsidy per Uber Eats delivery is ________, and the deadweight loss associated with the $4 tax per Uber Eats delivery is __________. (Fill in the blanks.)

The graph above represents the demand and supply curves in the market for Uber Eats delivery services. Use it to answer questions 14 – 19.

Which of the following statements are true about the deadweight loss of a tax? It tends to be larger when taxes are larger It is zero when supply is perfectly inelastic It is zero when demand is perfectly inelastic

Which of the following statement(s) about income elasticity are true? Normal goods always have a positive income elasticity of demand. When the income elasticity of demand for a good is greater than 1, an increase in the level of income leads to an increase in the share of income spent on the good. Inferior goods have an income elasticity of demand between 0 and 1.

 Which of the following statements about the rent control policy are true? (i) It is a price ceiling on rents intended to make housing more affordable for the poor. (ii) Reduced rent creates a relatively small shortage of housing in the short run, but a large shortage in the long run because supply and demand are more elastic in the long run. (iii) It is a price floor designed to stimulate construction of large apartment complexes.

PLEASE SHOW YOUR ONE 8 X 11 SCRATCH PAPER AGAIN BEFORE YOU SUBMIT THE EXAM, USING YOUR WEBCAM. Note: Do not send the ECON 1101 team an email with your scratch paper.

The well child clinic nurse reminds the parents of a 2-year-old that the primary environmental influence for physical development is: