Consider a market with a price ceiling. If the price ceiling is lowered which of the following would happen?
a. The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would decrease
b. The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would increase
c. The consumer surplus, the producer surplus and the dead weight loss would all decrease
d. The consumer surplus, the producer surplus and the dead weight loss would all increase
e. The consumer surplus would decrease, the producer surplus would increase and the dead weight loss would increase
B
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Describe how inflation can be costly even if it is anticipated
What will be an ideal response?
An explanation for the low saving rate in the United States consistent with the life-cycle reason for saving includes:
A. large and persistent capital gains. B. households spending beyond their means to keep up with community standards. C. relatively generous government assistance for the elderly and large down payments required for home purchases. D. highly-developed financial systems making it easy to buy homes with down payments under 15 percent.