Refer to the figure to answer the following two questions. 500 P 450 400 350 300 250 200 150 100 50 Q 0 35 70 105 140 175 210 245 280 315 350 385 420 455 490 525 1) If the government imposes a binding price floor of $350.00 in this market, what is the result? a. There will be a of units. b. The redistribution of surplus from consumers to the producer is equal to $ c. The deadweight loss due to price floor is $ 2) If the government imposes a binding price ceiling of $100.00 in this market, what is the result? a. There will be a of units. b. The highest price that would be charged in a black market is $ c. The deadweight loss due to price ceiling is $

Refer to the figure to answer the following two questions. 500 P 450 400 350 300 250 200 150 100 50 Q 0 35 70 105 140 175 210 245 280 315 350 385 420 455 490 525 1) If the government imposes a binding price floor of $350.00 in this market, what is the result? a. There will be a of units. b. The redistribution of surplus from consumers to the producer is equal to $ c. The deadweight loss due to price floor is $ 2) If the government imposes a binding price ceiling of $100.00 in this market, what is the result? a. There will be a of units. b. The highest price that would be charged in a black market is $ c. The deadweight loss due to price ceiling is $

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 2CQQ

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