Use the shaded triangle to show the deadweight loss associated with the external benefit depicted on the graph. | Deadweight loss Supply Demand (social) Demand (internal) Quantity Price ($)

This Graph illustrates the supply and demand for hats in 2016 price Supply 2016 12.95 9.10. 4.00 0 A 4) 4 S a) zero Demand 2016 0 1,970 3,345 5,635 If 3,345 (at the efficient level) units were traded, Deadweight-Loss would be b) equal to "area (g)." Oc) equal to "area (e) plus area (f)." quantity d) equal to "area (g) plus area (h)."

B. Let’s consider the market for flour in a different town. Assume that it is efficient (i.e. that there are not external costs to producing flour, and no external benefits from consuming it). Price ($/lb) Quantity Supplied (thousands of lbs per day) Quantity Demanded (thousands of lbs per day) 1.5 8 14 2 9 13 2.5 10 12 3 11 11 3.5 12 10 4 13 9 What is the price and quantity of flour sold without government intervention. Graph this equilibrium. XXXX   2. Suppose that, alarmed by the inability of many poorer consumers to buy flour, the government institutes a $2/lb price ceiling. How much flour will suppliers wish to sell, and how much will buyers demand?  How much flour will actually be sold? Show this outcome on the same graph you drew for question 1. XXXX 3. Describe, in one sentence each, three problems that this policy might create? Please do not simply copy down phrases from the textbook, but instead describe ways that…

Consider the attached graph showing the supply and demand for rental apartments around the UH. campus. If the government were to subsidize housing by $1000 per unit per month, then the quantity of rental apartments would____ (increase or decrease) by____ thousand units. The rental price received by landlords inclusive of the subsidy would ____(increase or decrease) by_____ dollars per month while the price paid by tenants, net of the subsidy, would____ (increase or decrease) by____ dollars per month