12. Consider the data in the table below when you answer this question. (As the table suggests, thedemand curve for this continuous good is a straight line and so is the supply curve. Factor that into yourcalculation.)PQs$1212$10$8$6$4$24108812164202Suppose the price is $8 but that only 4 pizzas are bought and sold due to regulations imposed by thegovernment. The most social surplus that can be generated isa. $20.b. $30.c. $36.

Given information As per government regulation only 4 units can be sold and bought at price $8

12. Consider the data in the table below when you answer this question. (As the table suggests, the demand curve for this continuous good is a straight line and so is the supply curve. Factor that into your calculation.) Qs $12 $10 $8 $6 12 4 10 8 8. 12 6 $4 $2 16 4 20 Suppose the price is $8 but that only 4 pizzas are bought and sold due to regulations imposed by the government. The most social surplus that can be generated is а. $20.

12. Consider the data in the table below when you answer this question. (As the table suggests, the demand curve for this continuous good is a straight line and so is the supply curve. Factor that into your calculation.) Qs $12 $10 $8 $6 12 4 10 8 8. 12 6 $4 $2 16 4 20 Suppose the price is $8 but that only 4 pizzas are bought and sold due to regulations imposed by the government. The most social surplus that can be generated is а. $20.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 18RQ: If the price is above line equilibrium level, would you predict a surplus or a shortage? If line...

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