4. What areas represent producer surplus after the price floor is imposed?5. What areas represent deadweight loss after the price floor is imposed? Price ofalmonds(dollarsper fon)Price floorP.P.Quantity of almonds(tons)0.The figure above shows the demand and supply curves for the almonprice is too low and tries to help almond growers by setting a price fAnswer all questions using the letters representing the area(s).the prico floorX X* 其其其其其其其

The price floor reduces quantity demanded and raises quantity supplied, which decreases market…

Answered: 4. What areas represent producer…

4. What areas represent producer surplus after the price floor is imposed? 5. What areas represent deadweight loss after the price floor is imposed?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. What areas represent producer surplus after the price floor is imposed?

5. What areas represent deadweight loss after the price floor is imposed?

Price of
almonds
(dollars
per fon)
Price floor
P.
P.
Quantity of almonds
(tons)
0.
The figure above shows the demand and supply curves for the almon
price is too low and tries to help almond growers by setting a price f
Answer all questions using the letters representing the area(s).
the prico floor
X X* 其其其其其其其

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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