Answered: A Pi P. F D D Figure 1 Figure 1…

A Pi P. F D D Figure 1 Figure 1 represents the case of a price floor, denoted Pr. Without any controls, the equilibrium price would have been Pe. Consider Figure 1 for Questions 45 to 50.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 18RQ: If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on...

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Question

Please answer the all questions 45,46,47,48,49,50!!!!!!!!!!!

45. Before the price controls, the consumer surplus is:
a) A+B+E b) C+D+F c) A+B+C d) D
46. Before the price controls, producer surplus is:
a) A+B+E b) C+D+F c) A+B+C d) D
47. After the price controls, the consumer surplus is:
a) A b) C+D+F c) B+C+D d) D
48. After the price controls, producer surplus is:
a) A b) C+D+F c) B+C+D d) D
49. The impact of the price control on producer surplus is:
a) -C-F b) E+F c) B-F d) C+F
50. The deadweight loss caused by the price control is:
a) -C-F b) -E-F c) -B-E d ) C+F

A
Pi
P.
F
D
D
Figure 1
Figure 1 represents the case of a price floor, denoted Pr. Without any controls, the equilibrium
price would have been Pe. Consider Figure 1 for Questions 45 to 50.

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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