A price ceiling that is set below the equilibrium price will cause: an increase in demand....
A price ceiling that is set below the equilibrium price will cause:
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an increase in demand.
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quantity supplied to exceed quantity demanded.
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total economic surplus to rise.
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producer surplus to fall.
Homework Answers
Ans
Producer surplus falls since price is less than what they would otherwise get. Note A is not right because quantity DEMANDED rises and not quantity
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A price ceiling that is set below the equilibrium price will
cause:
an increase in demand....
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