Figure: Supply and Demand 4 Price $20 15- 10- 5 8 0 5 Reference Ref 5-17 (8-17) 16 10 12 L 15 20 Quantity (Figure: Supply and Demand 4) Refer to the figure. If the good is randomly allocated between those with the highest and lowest willingness to pay, what is the value of consumer surplus at the price ceiling of $8? A. $36 B. $54 C. $136 D. $45

Figure: Supply and Demand 4 Price $20 15- 10- 5 8 0 5 Reference Ref 5-17 (8-17) 16 10 12 L 15 20 Quantity (Figure: Supply and Demand 4) Refer to the figure. If the good is randomly allocated between those with the highest and lowest willingness to pay, what is the value of consumer surplus at the price ceiling of $8? A. $36 B. $54 C. $136 D. $45

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 20RQ: Under which circumstances does line tax burden fall entirely on consumers?

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