Question

Drag the words into the correct boxes Market occurs when all Net have been captured. This means Demand will equal and Marginal will equal Costs. This also occurs when there is no Loss. Net Benefits are all captured when the sum of Consumer and Surplus is maximised and there is no under or production or Price ceilings set equilibrium are said to be binding. This is because the market results in a where quantity demanded is than quantity supplied Price would normally but it is not allowed to. This means the market under so the market stops equilibrium. Sometimes a market results when some buyers resell the product at a price. Price Floors set equilibrium result in a Price will want to but it is unable to. This results in consumption stopping equilibrium this creating a deadweight loss. Monopoly prices are set than equilibrium and result in production and deadweight loss. Externalities distort the equilibrium in markets as externalities mean that external and benefits are not factored in to private demand and curves. As a result when external costs are not factored in markets produce or consume. When external benefits are not factored in markets produce or consume. To correct or these market failures Governments should goods with positive externalities and tax goods with externalities. Sales taxes can be placed on consumers or When a tax is placed on producers it will shift the curve up by the amount of the tax the price buyers pay and the price sellers receive Consumer surplus and producer surplus Even though the government gains revenue the losses to consumers and producers are greater leading to a loss. Supply efficiency before greater produces above Marginal costs before Producer decreases Surplus Deadweight decreases Black shortage higher higher increases Benefits negative surplus decreases over subsidise consumption supply tax below Benefits supply rise producers deadweight under decrease over under

Answer 1

Market efficiency been captured means occurs when all Net Benefits have This Demand will equal Marginal Benefits will equal Marginal also Supply and This occulus when there s no costs Deadweight Loss sum of Net Benefits are all captured when the consumer Susplus and Producer Susplus mani mued there production or os consumption is way is under no and ones Price ceilings bending The where in quantity price ceilings set below equilibrium are said to be because the Market results in Shortage demanded is higher than quantity applied Price would rue normally but it 4 not allowed to . This means the market to undes un produces market stops before equilibrium sometimes a black market results when some buyers to resell the product at a higher le price. ! ما the