when the government imposes a price ceiling below the equilibrium market producer surplus ______ and total...

when the government imposes a price ceiling below the equilibrium market producer surplus ______ and total surplus _______

A) will stay the same; will stay the same

b) will fall;will fall

c)will rise; will rise

d)will rise; will stay the same

Expert Solution

Rahul Sunny answered 3 years ago

A surplus may occur if: a. the government imposes a price ceiling. b. the government imposes...

A surplus may occur if: a. the government imposes a price ceiling. b. the government imposes a price floor. PLEASE ANSWER ONLY IF YOU ARE 100% CORRECT

Suppose the government imposes a price ceiling above the equilibrium price of a given good. d)Which...

Suppose the government imposes a price ceiling above the equilibrium price of a given good. d)Which of the following is the most likely result? a)Some other rationing device will emerge to allocate the good among buyers. b)Some buyers and sellers will be willing to risk breaking the law in order to exchange the good at a price above the equilibrium price since there would be a shortage of the good at the price ceiling. c)No change will occur in the...

When prices rise above equilibrium: A. producer surplus falls and consumer surplus rises. B. producer surplus...

When prices rise above equilibrium: A. producer surplus falls and consumer surplus rises. B. producer surplus falls and it is uncertain what happens to consumer surplus. C. consumer surplus falls and it is uncertain what happens to producer surplus. D. producer surplus falls and consumer surplus falls. Say which answer choice it is and why.

Sometimes, a price ceiling can increase Consumer Surplus compared to the market equilibrium. Under what conditions...

Sometimes, a price ceiling can increase Consumer Surplus compared to the market equilibrium. Under what conditions does this occur, and how does this relate to the elasticity of demand?

69.Total surplus is maximized when the price is _____ the equilibrium price. slightly lower than as...

69.Total surplus is maximized when the price is _____ the equilibrium price. slightly lower than as low as possible below exactly at 71. If the supply of a good increases while the demand for that good decreases, the equilibrium quantity will decrease. be indeterminate. remain unchanged. increase. slightly higher than 73. Jackie finds a pair of jeans that she likes but the price tag is missing. She is willing to buy them as long as they're not more than $100....

Suppose the Madison city government imposes a price ceiling on the rental price of apartments.The demand...

Suppose the Madison city government imposes a price ceiling on the rental price of apartments.The demand for rental apartments is given by the equationP= 1500−0.2Q, and the supply is given by the equationP= 0.2Q+ 300. (a) Without a price ceiling, what would be the equilibrium quantity and price? Calculate the consumer surplus (CS) and producer surplus (PS). Graph the demand and supply curves and shade the areas for CS and PS on the graph. (b) Suppose the price ceiling is...

What is consumer surplus? How does it relate to market equilibrium? What is the producer surplus?...

What is consumer surplus? How does it relate to market equilibrium? What is the producer surplus? How does it relate to market equilibrium? What is a deadweight loss (DWL)? How does a tax increase affect both the buyer and seller? How is it related to DWL?

A government that imposes a price floor above the equilibrium price of a good will cause:

1. Define consumer surplus and producer surplus. Explain why the equilibrium price and quantity maximizes the...

1. Define consumer surplus and producer surplus. Explain why the equilibrium price and quantity maximizes the sum of producer plus consumer surplus (the total surplus). 2. There are far more consumers of agricultural commodities than there are producers; but agricultural producers have consistently been able to get Congress to vote them subsidies at taxpayer expense and supply restrictions at the consumer's expense. How can the success of the agricultural lobby be explained by “the general rule of political economy”?

How does elasticity effect consumer surplus and producer surplus? Ex. If the equilibrium price is elastic...

How does elasticity effect consumer surplus and producer surplus? Ex. If the equilibrium price is elastic and equilibrium demand is inelastic

Question