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sperry263 sperry263
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Short description: A graph plots quantity against price. Long description: The horizontal axis representing quantity lists the following values from left to right: Q subscript 1 and Q subscript 0. The vertical axis representing the price lists the following values from bottom to top: P subscript 1 and P subscript 0. The graph plots three lines. An increasing line representing supply passes through (Q subscript 1, P subscript 1) and (Q subscript 0, P subscript 0). A decreasing line representing demand passes through (Q subscript 0, P subscript 0). A horizontal line is extended from P subscript 1 and it intersects the demand and supply lines. Vertical dashed lines are extended from Q subscript 1 and Q subscript 0 to meet the supply and demand lines. Horizontal dashed lines are extended from P subscript 0 and P subscript 1 to meet the supply and demand lines. The region above P subscript 0, to the left of Q subscript 1, and below the demand line is numbered 1. The region within P subscript 0 and P subscript 1, to the left of Q subscript 1 is numbered 2. The region below P subscript 1, above the supply line, and to the left of Q subscript 1 is numbered 3. The region below the supply line, to the left of Q subscript 1 is numbered 4. The region below the demand line, to the left of Q subscript 0, above P subscript 0, and to the right of Q subscript 1 is numbered 5. The region below P subscript 0, to the right of Q subscript 1, to the left of Q subscript 0, and above the supply line is numbered 6. The region above P subscript 1, below P subscript 0, to the left of Q subscript 0, and below the supply line is numbered 7. The region below P subscript 1 and within Q subscript 1 and Q subscript 0 is numbered 8. The region below P subscript 0, above P subscript 1, and within the demand and horizontal lines is numbered 9.

FIGURE 5-6

Refer to Figure 5-6. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a ________ at P1. One result would be ________.



▸ price ceiling; an increase in economic surplus represented by areas 5 and 6

▸ price floor; a deadweight loss represented by areas 5, 6, 7 and 8

▸ price ceiling; a deadweight loss represented by areas 5 and 6

▸ price ceiling; a deadweight loss represented by areas 5, 6, 7 and 8

▸ price floor; a deadweight loss represented by areas 2, 6 and 7
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Microeconomics

Microeconomics


Edition: 17th
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gsh2571gsh2571
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sperry263 Author
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This calls for a celebration Person Raising Both Hands in Celebration
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Smart ... Thanks!
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Brilliant ツ
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