70 Supply 60 50 40 30 20 10 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 Refer to Figure 5 – 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be O A. a loss of economic surplus of the area 1. O B. a loss of economic surplus of the areas 6 and 7. OC. a loss of economic surplus of the areas 2 and 6. O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7. O E. a loss of economic surplus of the areas 1, 2, 3, and 4. (moy sad ss) aOud
70 Supply 60 50 40 30 20 10 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 Refer to Figure 5 – 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be O A. a loss of economic surplus of the area 1. O B. a loss of economic surplus of the areas 6 and 7. OC. a loss of economic surplus of the areas 2 and 6. O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7. O E. a loss of economic surplus of the areas 1, 2, 3, and 4. (moy sad ss) aOud
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 6PA
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Transcribed Image Text:70
Supply
60
50
40
30
20
10 -O
Demand
1000 2000 3000 4000 5000 6000 7000 8000
Quantity (number of hours of gardening service per month)
FIGURE 5-5
Refer to Figure 5-5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per
hour for gardening services, the result would be
O A. a loss of economic surplus of the area 1.
O B. a loss of economic surplus of the areas 6 and 7.
OC. a loss of economic surplus of the areas 2 and 6.
O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7.
O E. a loss of economic surplus of the areas 1, 2, 3, and 4.
(moy Jad ss) aɔa
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