1. On the graph below, show a price ceilling at $3. a. Illustrate and identify the resulting XS supply or shortage. b. Shade in the deadweight loss due to the price control. C. Calculate the welfare lost to society from the price control. Price, P 10 8. 6. E PE 5 4. 3 1 D. 1 2 Widgets, Q 10 4 6 QE 0. 3 2. On the graph below, show a price floor at $8 a. Illustrate and identify the resulting XS supply or shortage. b. Shade in the deadweight loss due to the price control. Price, P 10 6. PE 5 4 3 1 2. Widgets, Q 10 3 4. QE 7. 9. 2 A price floor and a price support at $8 feel the same to the consumer. But the producers would benefit more with a price support rather than a price floor. On the graph below, show the increase in producer surplus between a price floor at $8 and price support at $8 Price, P 10 7 6. Pe 5 4. 3. 2 D Widgets, Q 9 10 8. QE

1. On the graph below, show a price ceilling at $3. a. Illustrate and identify the resulting XS supply or shortage. b. Shade in the deadweight loss due to the price control. C. Calculate the welfare lost to society from the price control. Price, P 10 8. 6. E PE 5 4. 3 1 D. 1 2 Widgets, Q 10 4 6 QE 0. 3 2. On the graph below, show a price floor at $8 a. Illustrate and identify the resulting XS supply or shortage. b. Shade in the deadweight loss due to the price control. Price, P 10 6. PE 5 4 3 1 2. Widgets, Q 10 3 4. QE 7. 9. 2 A price floor and a price support at $8 feel the same to the consumer. But the producers would benefit more with a price support rather than a price floor. On the graph below, show the increase in producer surplus between a price floor at $8 and price support at $8 Price, P 10 7 6. Pe 5 4. 3. 2 D Widgets, Q 9 10 8. QE

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand, And Government Policies

Section: Chapter Questions

Problem 10PA

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