Which of the variables (consumer surplus, producer surplus, and deadweight loss) have decreased due to the price floor of $9.00 set by the government? Deadweight loss Producer surplus Market equilibrium price Consumer surplus
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Which of the variables (
Deadweight loss
Producer surplus
Consumer surplus
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- California LifeLine provides discounted home phone and cell phone service to qualified households. The service discount cannot exceed $39 per household. What would happen if the state of California were to increase the subsidy to $59 per household? Group of answer choices Supply would shift to the left Government payments to households would decrease The price consumers pay increases and the quantity consumed increases The price consumers pay falls and the quantity consumed increasesIn a market with a price ceiling, the price is: Group of answer choices No answer text provided. actually the equilibrium price because the price ceiling has no effect on the market. set lower than the equilibrium price and represents the government mandated maximum price. set higher than the equilibrium price and represents the government mandated maximum price.Consumer surplus is defined as the Group of answer choices difference between the willingness to pay for a good and the willingness to sell it. quantity of units that consumers want to buy at the market price. difference between the willingness to pay for a good and the price paid to get it. total revenue earned from producing and selling some good. difference between the price the seller receives and the willingness to sell it.
- Consider the graph below. The market price is P1. Suppose the government by rule or regulations sets a regulated price of P2 or P3. A Binding Price Ceiling is a regulated price below the market price. A Non-Binding Price Ceiling is a regulated price above the market price. A Binding Price Floor is a regulated price above the market price. A Non-Biding Price Floor is a regulated price below the market price. Look at the image below. which of these choices are true? multiple answers are correct: A law which says sellers cannot charge more than P3 is a non-binding price ceiling. A law which says sellers cannot charge more than P3 is a binding price ceiling. A law which says sellers cannot charge less than P3 is a non-binding price ceiling. A law which says sellers cannot charge less than P3 is a binding price ceiliing. A law which says sellers cannot charge more than P3 is a non-binding price floor. A law which says sellers cannot…The demand and supply functions for box office movie rentals on satellite TV are given as: Qd =200 000 -4 000P and Qs = 20 000 + 2 000P 3.1 Calculate the consumer and producer surplus in this market. If the government implements a price ceiling of $15 on the price of rental service, calculate the new levels of consumer and producer surplus. Are all consumers better off? Are producers better off?Which of the following statement is false? A price ceiling that is set above the equilibrium price does not affect total surplus. A binding price floor always creates deadweight loss and always reduces both producer and consumer surplus. A price floor that is set above the equilibrium price creates a surplus. A binding price ceiling always decreases producer surplus but might increase or decrease consumer surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- In a perfectly competitive market for cheese with downward sloping demand and upward sloping supply, the equilibrium price is $12 per kilo. If the government imposes a price ceiling of $10, we can conclude that the government policy will: Select one: a. reduce the number of units sold only if demand is elastic b. decrease producer surplus and decrease total surplus c. reduce the number of units sold only if demand is inelastic d. decrease producer surplus but increase total surplus e. increase producer surplus but decrease total surplusAnswer questions as either True or False. If the answer is false, explain why it is false. Question 6 Consumer surplus is the area above the demand curve but below price. Question 7 The producer surplus for a particular unit is equal to the vertical distance between price and the supply curve. Question 8 Social efficiency is an allocation of resources in which consumer and producer surplus are equal. Question 9 A deadweight loss results when resources are allocated in an unequal manner.Which of the following is an accurate statement about the consequence of nonbinding price ceilings? Group of answer choices They do not change the quantity of goods bought or sold in the legal market. They create a surplus in the legal mariket. They increase the quantity demanded of the good in question. They require the seller to advertise the product at the equilibrium price. They prevent the seller from receiving the equilibrium price.
- Suppose the market-clearing price of wheat is $10.00 per pound, but the government establishes a legally-mandated price floor at $12.00 per pound. The newly legislated price tends to... Group of answer choices protect the customer of wheat increase the production of wheat create a shortage of wheat increase the quantity demanded of wheatThe following are correct descriptions about a Price Ceiling, EXCEPT: Question 8 options: Is the regulated price imposed below the market price that would prevail in equilibrium. A price ceiling will create an excess of supply. A price ceiling will reduce producer's surplus if the regulated price prevails. A price ceiling could lead to an increase in producer's surplus, if a black market emerges.The market for N-95 masks is perfectly competitive. Market Demand is given by Q=434-2P and Market Supply is given by Q=2P. The government imposes a price ceiling of $52. What is the maximum Consumer Surplus in the market with the price ceiling?