Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of

In a competitive market, the demand and supply curves are Q = 12 - P and Q = 5P, respectively. If output is fixed at Q = 5, what is the amount of the resulting deadweight loss?

A) 0 B) 5 C) 10 D) It cannot be determined without more information.

Which one of the following statements is TRUE?

A) An effective price ceiling results in a surplus of the good. B) An effective price floor results in a shortage of the good. C) When the market clearing price of a good is the equilibrium, then everyone can afford it. D) The market clearing price of a good reflects its relative scarcity.