Question
Given the diagram below if there is government intervention in the market and the maximum price is set a $3: a) is it a
Given the diagram below if there is government intervention in the market and the maximum price is set a $3: a) is it a price ceiling or price floor - where is illegal area (1 point). b) calculate consumer surplus (calculation should be visible) (0.5 points) c) calculate producer surplus (calculation should be visible) (0.5 points) d) deadweight loss if any (calculation should be visible) (1 point) e) Is this market efficient? Explain your opinion. (1 point) P 11 10- 9 8+ 7- 6+ 5+ D 4 00 2 1 A B F 1 N C E 30 4 10 $ D Q
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
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