Consider the perfectly competitive market for canoes. Suppose the market demand for canoes is described by:...

Consider the perfectly competitive market for canoes. Suppose the market demand for canoes is described by: Q d = 200 − 2 P and the market supply of canoes is described by: Q s = 2 P.

Suppose there is currently a price floor of $70 in place in the market for canoes. Consumer surplus under this price floor is (A) $900 (B) $4,900 (C) $2,500 (D) $1,800 .
Suppose the government removes the price floor, consumer surplus will (A) decrease by $1600 (B) increase by $1100 (C) increase by $1600 (D) increase by $3200

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Rahul Sunny answered 1 year ago

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