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In 2016 (when gasoline prices in the US were relatively low), some policy-makers argued that a binding price floor on gasoline might encourage more people
In 2016 (when gasoline prices in the US were relatively low), some policy-makers argued that a binding price floor on gasoline might encourage more people to use public transportation instead of driving. For this question. suppose that the gasoline market illustrated below does not experience market failures. What is the deadweight loss created by the binding price oor? Enter a positive value (or zero if there is no deadweight loss). There are three possible prices that you could choose from to solve this problem; part of what this problem is testing is whether you can identify where a price oor must be placed in order to be binding. 3 333 $1.!o'l 2-33 2.\" $ Lli'l 1|
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