(Figure: Determining Surplus and Loss) In the graph, a minimum price of $8 would allow for a binding price floor. 16 12 8. 20 40 60 True False

What would be the impact of a price ceiling of $ 10     (a) a new equilibrium quantity would be established.     (b) a shortage of 12 units.     (c) a surplus of 20 units.     (d) a shortage of 6 units.     (e) a surplus of 12 units

Please evaluate the following statements and determine which ones are true? (1) "a price ceiling above the equilibrium price of grapes will create a shortage of grapes." (1I) "a price floor below the equilibrium price of onions will create a surplus of onions." statement I is true, statement II is false statement I is false, statement II is true O both statements are true both statements are false

What would be the impact of a price floor of $12 A) There would be no impact B) a shortage of 12 units C) A surplus of 6 units D) A shortage of 6 units E) A surplus of 10 units

Refer to the figure. Price (dollars) 10 9 8 7 5 a 3 2 1 0 Market for Artichokes 50 100 D 150 3 200 Quantity (pounds of artichokes) 250 Tools ES O The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market Suppose the equilibrium price of artichokes is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week. Using the graph determine how much economic surplus is generated in the market each week. Economic surplus: $

1. Define "consumer surplus" and "producer surplus." Consumer surplus (CS) is the benefit surplus received by a consumer or consumers through market transactions. A CS arises because all consumers pay the equilibrium price even though some consumers would be willing to pay more. CS is measured as the difference between the (maximum. minimum ) price a consumer is (or consumers are) willing to pay (WTP) ( plus, minus , the same as ) the actual price. Consumer surplus is (directly, inversely) related to price. Producer surplus (PS) is the benefit surplus received by a producer or producers through market transactions. A PS arises because some producers are willing to sell a product at a lower price than the equilibrium price. PS is measured as the difference between the actual price the producer receives (or producers receive) and the (maximum, minimum ) price a producer is (or producers are) willing to accept (WTA) as a selling price. Producer surplus is directly, inversely) related to…