QUESTION 3: Refer to the graph below and answers the following questions. All Underling work must be shown to earn full credit. 8. Supply 4. Demand 40 80 120 160 A. Refer to the graph above. When the market is in equilibrium, consumer surplus is equal to: A) 160 C) 240 B) 320 D) 80 B. Refer to the graph above. When the market is in equilibrium, producer surplus is equal to: C) s0. A) 160 B) 240. D) 320. C. Refer to the graph above. With an effective price ceiling at $2, total con sumer surplus would be: A) 240 B) 200 C) 160. D) 320. D. Refer to the graph above. The effective price ceiling at $2 increases the amount of a product that consumers buy to120 units, therefore all consumers in this market are better off with the price ceiling at $2. Briefly explain your choice of answer. TRUE ( FALSE ( E. Refer to the graph above. With an effective price ceiling at $2, the reduction in economic surplus and market efficiency would be: A) 0. B) 160 C) 40 D) 80

QUESTION 3: Refer to the graph below and answers the following questions. All Underling work must be shown to earn full credit. 8. Supply 4. Demand 40 80 120 160 A. Refer to the graph above. When the market is in equilibrium, consumer surplus is equal to: A) 160 C) 240 B) 320 D) 80 B. Refer to the graph above. When the market is in equilibrium, producer surplus is equal to: C) s0. A) 160 B) 240. D) 320. C. Refer to the graph above. With an effective price ceiling at $2, total con sumer surplus would be: A) 240 B) 200 C) 160. D) 320. D. Refer to the graph above. The effective price ceiling at $2 increases the amount of a product that consumers buy to120 units, therefore all consumers in this market are better off with the price ceiling at $2. Briefly explain your choice of answer. TRUE ( FALSE ( E. Refer to the graph above. With an effective price ceiling at $2, the reduction in economic surplus and market efficiency would be: A) 0. B) 160 C) 40 D) 80

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 18SQ

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