QUESTION 1 Consumer surplus may decrease when a. there is imposition of a binding price floor in the market b. there is a decrease in the production cost of the good O . there is an increase in the number of sellers of the good O d. the sellers expect the price of the good to be lower next month

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
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1 and 2 please

QUESTION 1
Consumer surplus may decrease when
a. there is imposition of a binding price floor in the market
b. there is a decrease in the production cost of the good
c. there is an increase in the number of sellers of the good
O d. the sellers expect the price of the good to be lower next month
QUESTION 2
Price
.F
D
P1
B
P2
Demand
Q1
Q2
Quantity
Refer to the above Figure. At the price P1, the consumer surplus would be
а. BDF
b. BDG
с. АВС
d. FAG
Transcribed Image Text:QUESTION 1 Consumer surplus may decrease when a. there is imposition of a binding price floor in the market b. there is a decrease in the production cost of the good c. there is an increase in the number of sellers of the good O d. the sellers expect the price of the good to be lower next month QUESTION 2 Price .F D P1 B P2 Demand Q1 Q2 Quantity Refer to the above Figure. At the price P1, the consumer surplus would be а. BDF b. BDG с. АВС d. FAG
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