If a price ceiling is set at $2 in the above market, there is excess blanks.) O Supply, 3 Supply, 2 O Supply, 1 O Demand, 2 O Demand, 3 Question 17 O +ACGE O +EGMK Compared to the free market, the change in producer surplus from this policy equals -ACGE O-EFLK -EGLK of O 0,+ABGE units. (Fill in the Now use the same graph above to consider a different policy. Suppose there is no price ceiling, and a price floor of $9 is introduced. The government buys up all the excess supply. Relative to the free market, the change in consumer surplus equals and the change in producer surplus equals (Fill in the blanks.) -ACGE, -ABGE O +ACHE, +ACGE +EGMK, -EGLK O-ABGE, +ACGE

If a price ceiling is set at $2 in the above market, there is excess blanks.) O Supply, 3 Supply, 2 O Supply, 1 O Demand, 2 O Demand, 3 Question 17 O +ACGE O +EGMK Compared to the free market, the change in producer surplus from this policy equals -ACGE O-EFLK -EGLK of O 0,+ABGE units. (Fill in the Now use the same graph above to consider a different policy. Suppose there is no price ceiling, and a price floor of $9 is introduced. The government buys up all the excess supply. Relative to the free market, the change in consumer surplus equals and the change in producer surplus equals (Fill in the blanks.) -ACGE, -ABGE O +ACHE, +ACGE +EGMK, -EGLK O-ABGE, +ACGE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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