Which of the following is NOT true about price floors if they are binding (i.e., above the equilibrium price)? Group of answer choices 1. Consumer surplus is always lower than it would be in the competitive equilibrium. 2. Always increase consumer surplus. 3. Inefficient as economic surplus is not maximized. 4. Increase the producer surplus and create deadweight loss. Which of the following is the most likely explanation for the imposition of a price ceiling on the market of bottled water? Group of answer choices 1. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole.
Which of the following is NOT true about price floors if they are binding (i.e., above the equilibrium price)? Group of answer choices 1. Consumer surplus is always lower than it would be in the competitive equilibrium. 2. Always increase consumer surplus. 3. Inefficient as economic surplus is not maximized. 4. Increase the producer surplus and create deadweight loss. Which of the following is the most likely explanation for the imposition of a price ceiling on the market of bottled water? Group of answer choices 1. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Which of the following is NOT true about
Group of answer choices
1. Consumer surplus is always lower than it would be in the competitive equilibrium.
2. Always increase consumer surplus.
3. Inefficient as economic surplus is not maximized.
4. Increase the producer surplus and create deadweight loss .
Which of the following is the most likely explanation for the imposition of a
Group of answer choices
1. Policymakers have studied the effects of the price ceiling carefully, and they recognize that the price ceiling is advantageous for society as a whole.
2. Buyers of bottled water, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling.
3. Sellers of bottled water, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling.
4. Buyers and sellers of bottled water have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling.
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