Due to Covid, the unemployment rate increases sharply. Many households are not able to afford to pay rent for their housing. The government decides to implement price controls so that households continue to afford their rent. The demand function in the perfectly competitive house-renting market is given by: P = 2000 - 2Q. The supply function is given by: P = 1500 + 3Q. Which of the following price ceilings will be binding? P = 1500 P = 1850 P = 1900 P= 1800 None of the other answers is correct.

In 2014, the U.S. House of Representatives approved a new farm bill establishing the Margin Protection Program (MPP) for dairy producers. Assume that the program has effectively created a price floor for milk at $0.18 per pound. Use the following additional information to answer the following questions: Without the price floor, the equilibrium price of milk is $0.15 per pound, and the equilibrium quantity is 200 billion pounds of milk. The supply curve intersects the price axis at $0.05 and the demand curve intersects the price axis at $0.25. At the price floor of $0.18, the quantity supplied is 260 billion, and the quantity demanded is 140 billion. To support the price floor, the USDA buys up the 120 billion pounds of excess milk. i. With the price floor at $0.18 per pound of milk, how much consumer surplus is created? Do not round your answer.   ii. With the price floor at $0.18 per pound of milk, how much producer surplus is created? Do not round your answer.   iii. With the price…

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Suppose the market for a certain good is perfectly competitive and the demand is given by P=1000-Q and the supply is given by P=Q. The market is currently in equilibrium. What are the producer surplus and consumer surplus, respectively? $1250 and $1250 $2500 and $2500 $2500 and $1250 $1250 and $2500