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  
Trey4sho Trey4sho
wrote...
Go to Answer
Posts: 128
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 2 and Q subscript 0. The vertical axis representing the price lists the following values from bottom to top: P subscript 2 and P subscript 0. The graph plots three lines. An increasing line represents supply and a decreasing line represents demand. The lines intersect at (Q subscript 0, P subscript 0). Vertical and horizontal dashed lines are extended from the intersection point. A horizontal line is extended from P subscript 2 and it intersects the demand and supply lines. A vertical line is extended from the point, where the lines, P subscript 2 and demand intersect. The region above P subscript 2, to the left of Q subscript 2, and below the demand line is numbered 1. The region within P subscript 2 and P subscript 0, to the left of Q subscript 2 is numbered 2. The region below P subscript 0, above the supply line, and to the left of Q subscript 2 is numbered 3. The region below the supply line, to the left of Q subscript 2 is numbered 4. The region below the demand line, to the right of Q subscript 2, above P subscript 0, and the left of Q subscript 0 is numbered 5. The region below P subscript 0, to the right of Q subscript 2, to the left of Q subscript 0, and above the supply line is numbered 6. The region below the supply line and within Q subscript 2 and Q subscript 0 is numbered 7. The region below P subscript 2 and within supply and demand lines is numbered 8.

FIGURE 5-7

Refer to Figure 5-7. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a price floor at P2. The redistribution of surplus from consumers to the producer is represented by



▸ areas 2 and 3

▸ areas 2, 3, 5 and 6

▸ areas 5 and 6

▸ area 1

▸ area 2
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 36 times
1 Reply
Replies
Answer verified by a subject expert
callisonrcallisonr
wrote...
#1
Posts: 125
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

Trey4sho Author
wrote...

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

Yesterday
Thanks
dedricgard
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1341 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 181
  
 228
  
 380
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Should Ph.D.'s be addressed as doctors?