Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Question: If a price floor benefits producers, why does a price floor reduce social surplus? Because the losses to consumers are greater than the benefits to producers, so the net effect is negative. Since the lost consumer surplus is greater than the additional producer surplus, social surplus falls.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93105291

Have any Question?


Related Questions in Microeconomics

Question again our seller starts with demand q 12 - p and

Question: Again our seller starts with demand Q = 12 - P and marginal production costs of $4 per unit. The seller's transaction cost is $1 per unit, and buyers' are $2 per unit. a. Show that profit-maximizing output is 2 ...

Question joe buys a buick to keep it simple ignore the

Question: Joe buys a Buick. To keep it simple, ignore the sales tax. In all cases the cash price of the new car is $25,000. Show how components of consumption and investment are affected if Joe: (A) Pays cash. (B) Pays c ...

Question mr paul is consuming products x and y optimally

Question: Mr. Paul is consuming products X and Y optimally and deriving total utility of 10 utiles. when his budget is increased from K80 to k81, his utility increases from 10 utiles to 10.1 utiles. a) what is the margin ...

Question 2-1 your organization collects data on individual

Question: 2-1: Your organization collects data on individual patients shown in Appendix Table 2. Identify whether each variable is measured nominally, ordinally, or as an interval/ratio variable. Nominally 2-2: What stat ...

Question -a if the price elasticity of demand is given by

Question - a. If the price elasticity of demand is given by the expression E(p) = -p 2 /(p 2 + 3p + 2). Find the demand function q D (p) given that q D (1) = 8. b. A consumer has $100 to spend on two commodities X and Y. ...

Question what happens to a firms expansion path if one of

Question: What happens to a firm's expansion path if one of its inputs permanently falls in price while the price of the other remains constant? The response must be typed, single spaced, must be in times new roman font ...

Quesiton in the spring of 2003 two professors from a couple

Quesiton: In the spring of 2003, two professors from a couple of New York universities were allowed examine the filings of those companies that had complied with the filing requirement. They wanted to know which and how ...

Question topic the annual budget deficit in the usdescribe

Question: Topic: The Annual Budget Deficit in the US Describe the change that must occur for it to come about. Also identify the major barriers or resistance to change and how you would propose to overcome them. Finally, ...

Question despite the decline in unionization the presence

Question: Despite the decline in unionization, the presence of unions has an impact on labor conditions in the nonunion sector. List and explain three complications that arise in measurement of the pure union wage advant ...

Question in some industries merger agreements stipulate

Question: In some industries, merger agreements stipulate that a high-ranking executive of one company will be president or chairman of the board of the merged company for a certain period of time, say four years, after ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As