The figure depicts two industries, each facing an identical supply curve. Which of the following is true? OA. Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry A OB. Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a greater loss in efficiency in industry A OC. Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry B. OD. Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a smaller loss in efficiency in industry B. TI Price 5 4 3 2 0 6 8 -Industry A-Industry B 10 Supply 12 Quantity

The figure depicts two industries, each facing an identical supply curve. Which of the following is true? OA. Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry A OB. Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a greater loss in efficiency in industry A OC. Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry B. OD. Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a smaller loss in efficiency in industry B. TI Price 5 4 3 2 0 6 8 -Industry A-Industry B 10 Supply 12 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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