Given the diagram below if there is government intervention in the market and the maximum price...
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Given the diagram below if there is government intervention in the market and the maximum price is set a $3: a) is it a price ceiling or price floor - where is illegal area (1 point). b) calculate consumer surplus (calculation should be visible) (0.5 points) c) calculate producer surplus (calculation should be visible) (0.5 points) d) deadweight loss if any (calculation should be visible) (1 point) e) Is this market efficient? Explain your opinion. (1 point) P 11 10- 9 8+ 7- 6+ 5+ D 4 00 2 1 A B F 1 N C E 30 4 10 $ D →Q Given the diagram below if there is government intervention in the market and the maximum price is set a $3: a) is it a price ceiling or price floor - where is illegal area (1 point). b) calculate consumer surplus (calculation should be visible) (0.5 points) c) calculate producer surplus (calculation should be visible) (0.5 points) d) deadweight loss if any (calculation should be visible) (1 point) e) Is this market efficient? Explain your opinion. (1 point) P 11 10- 9 8+ 7- 6+ 5+ D 4 00 2 1 A B F 1 N C E 30 4 10 $ D →Q
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a is it a price ceiling or price floor where is illegal area 1 point Price ceiling is a legal maximu... View the full answer
Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Posted Date:
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