This was all one question on my worksheet1.The state of California has recently been experiencing high electricity prices. The government has yet to intervene in the market. Therefore, the Demand curve intersects the Price axis at $12. The Supply Curve intersects the Price Axis at $0. Equilibrium Price is $4 and Equilibrium Quantity is 5,500.Draw a representative market. Make sure to label all pieces. Calculate Consumer Surplus (without a price ceiling)Calculate Producer Surplus (without a price ceiling.)To combat high energy prices, the Governor of California wants to regulate electricity with price ceilings. Examine the effect of a price ceiling on electricity. What is a price ceiling?If the price ceiling is set at $2. Quantity demanded is 8,000 units and there is a shortage of 5,725 units. What is Quantity supplied?Draw and Calculate Consumer Surplus (with the price ceiling.)Draw and Calculate Producer Surplus (with the price ceiling.)Draw the Deadweight loss. What does this represent?

Name: This was all one question on my worksheet1.The state of California has
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Description: This was all one question on my worksheet1.The state of California has recently been experiencing high electricity prices. The government has yet to intervene in the market. Therefore, the Demand curve intersects the Price axis at $12. The Supply C

Price ceiling is the limit of price to be charged for a product. This price is maximum price to be…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This was all one question on my worksheet

1.The state of California has recently been experiencing high electricity prices. The government has yet to intervene in the market. Therefore, the Demand curve intersects the Price axis at $12. The Supply Curve intersects the Price Axis at $0. Equilibrium Price is $4 and Equilibrium Quantity is 5,500.

Draw a representative market. Make sure to label all pieces.
Calculate Consumer Surplus (without a price ceiling)
Calculate Producer Surplus (without a price ceiling.)
To combat high energy prices, the Governor of California wants to regulate electricity with price ceilings. Examine the effect of a price ceiling on electricity.
What is a price ceiling?

If the price ceiling is set at $2. Quantity demanded is 8,000 units and there is a shortage of 5,725 units. What is Quantity supplied?

Draw and Calculate Consumer Surplus (with the price ceiling.)
Draw and Calculate Producer Surplus (with the price ceiling.)
Draw the Deadweight loss. What does this represent?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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