If the government imposes a price floor of $120 in this market, what is the dead weight loss? If the government imposed price floor of $120, is removed and the price returns to equilibrium. What are the gains in consumer surplus by the current consumers and the new consumers

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter5: Markets In Motion And Price Controls
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180
160
Supply
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120
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Denjand
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Transcribed Image Text:180 160 Supply 140 120 100 80 60 40 20 Denjand 10 20 30 40 50 60 70 80 90
If the government imposes a price floor of
$120 in this market, what is the dead weight
loss?
If the government imposed price floor of
$120, is removed and the price returns to
equilibrium. What are the gains in consumer
surplus by the current consumers
and the new consumers
Transcribed Image Text:If the government imposes a price floor of $120 in this market, what is the dead weight loss? If the government imposed price floor of $120, is removed and the price returns to equilibrium. What are the gains in consumer surplus by the current consumers and the new consumers
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