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Refer to the graph shown. With an effective
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- At 10 million hours, what areas make up the total economic surplus in this market?Question 12.12 A surplus of a product will arise when price is above equilibrium with the result that quantity demanded exceeds quantity supplied. above equilibrium with the result that quantity supplied exceeds quantity demanded. below equilibrium with the result that quantity demanded exceeds quantity supplied. below equilibrium with the result that quantity supplied exceeds quantity demanded.Question 21 The graph below represents the market for lightbulbs. Calculate the surplus caused by the price floor. Pr = $7 Price (5) PE=$4.50 Market for Lightbulbs QD=2080 QE=6700 as 9080 Price Floor D Quantity
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- The graph shows the demand curve and the supply curve in the market for newpapers. Draw a horizontal line at a price at which there is a surplus of newpapers. Label it Surplus.Consider the market for paper towels where the supply curve is upward sloping and the demand curve is downward sloping. (Hint: Draw the graphs to answer the questions below.) Suppose there is an effective price ceiling applied on this market. What happens to the consumer surplus as a result? 2. Suppose there is an effective price floor applied on this market. What happens to the consumer surplus as a result?Suppose that the demand for rental apartments in Washington, DC, is represented by the following equation, where P is the monthly rent. QD = 10,000 – 2PThe supply of rental apartments is represented by the following equation: QS = 2,000 + 3PThe equilibrium rent is a) $ , and the equilibrium quantity is b) $ . Part 2 (1 point) Suppose the city council passes an ordinance placing a price ceiling of $1,200 on apartment rentals. How much of a shortage will this lead to? apartments