please help me answer all 3 multiple choice questions Consider the market for electricity illustrated in the figure to the right. Suppose the market is perfectlycompetitive and initially in equilibrium at a price of p₂ and a quantity of Q₂.Now suppose the government applies a price ceiling of p₁. Compared with the market-clearing equilibrium,consumer surplus wouldOA increase by areas B and F.OB. increase by area B.OC. increase by area C.OD. increase by area C and decrease by area E.O E. decrease by area E.In turn, producer surplus wouldOA. decrease by area C.OB. decrease by areas C and F.OC. decrease by areas B and E.OD. decrease by areas B, E, and G.OE. increase by area B.Consequently, with the price ceiling, deadweight loss would equalO A. areas B, C, E, and F.OB. area F.OC. areas E and F.OD. no areas.OE. area E.Price of electricityP3P₂P₁ABCDEFGQ₁Q3. Q₂Quantity of electricitySD

A price ceiling is the government imposed maximum price set for a product. Price ceiling is binding…

mpetitive and initially in equilibrium at a price of p₂ and a quantity of Q₂. w suppose the government applies a price ceiling of p₁. Compared with the market-clearing equilib sumer surplus would A. increase by areas B and F. B. increase by area B. C. increase by area C. D. increase by area C and decrease by area E. E. decrease by area E.

mpetitive and initially in equilibrium at a price of p₂ and a quantity of Q₂. w suppose the government applies a price ceiling of p₁. Compared with the market-clearing equilib sumer surplus would A. increase by areas B and F. B. increase by area B. C. increase by area C. D. increase by area C and decrease by area E. E. decrease by area E.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

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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