Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
sperry263 sperry263
wrote...
Go to Answer
Posts: 142
Rep: 0 0
A year ago


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
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 36 times
1 Reply
Replies
Answer verified by a subject expert
gsh2571gsh2571
wrote...
#1
Posts: 139
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

sperry263 Author
wrote...

A year ago
Correct Slight Smile TY
lolaww
wrote...

Yesterday
Brilliant ツ
klyn
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1356 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 208
  
 265
  
 170
Your Opinion
What's your favorite funny biology word?
Votes: 328
Previous poll results: Should Ph.D.'s be addressed as doctors?