Macmillan Learning Markets and Government: End of Chapter Problem 5. Suppose the federal government reduces an...

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Ⓒ Macmillan Learning Markets and Government: End of Chapter Problem 5. Suppose the federal government reduces an effective price floor toward the equilibrium price but not below it. What will happen to the deadweight loss and total surplus? a. The deadweight loss will O remain unchanged. increase. Obecome negative. O decrease. b. The total surplus will increase. Obecome negative. decrease. O remain unchanged. Ⓒ Macmillan Learning Markets and Government: End of Chapter Problem 5. Suppose the federal government reduces an effective price floor toward the equilibrium price but not below it. What will happen to the deadweight loss and total surplus? a. The deadweight loss will O remain unchanged. increase. Obecome negative. O decrease. b. The total surplus will increase. Obecome negative. decrease. O remain unchanged.

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