In a competitive market, where the highest valuation consumers always get supplied first, it the government imposes a price celing which is lower than the initial equilibrium, in the very short run (VSR means firms cannot change any of the factors, all fixed costs are unavaoidable, and there is no exit or entry) O firma will make a loss. O the gain in consumer surplus is equal to the loss in producer surplus. O consumers will want to buy less than what producers will supply. O the deadwoight loss is equal to the loss in producer surplus,

In a competitive market, where the highest valuation consumers always get supplied first, it the government imposes a price celing which is lower than the initial equilibrium, in the very short run (VSR means firms cannot change any of the factors, all fixed costs are unavaoidable, and there is no exit or entry) O firma will make a loss. O the gain in consumer surplus is equal to the loss in producer surplus. O consumers will want to buy less than what producers will supply. O the deadwoight loss is equal to the loss in producer surplus,

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

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