Questions 6-8

Question 6 (1 point) Price S: costs to sellers Pm=$3 Poelling-$2 D: value to buyers Ofcallme - 75 Om=Qe=100 Quantity Suppose the government imposes a binding price ceiling on the market of ice cream Match the CS, PS & TS with the areas on the graph. Consumer surplus 1. A+B+D 2. F Producer surplus 3. A+B+D+F Total surplus 4. A+B+C Deadweight loss 5. C+E Question 7 (1 point) Which of the following is NOT a correct statement regarding rent control? all potential tenants will benefit from the policy as they now pay lower rents landlords will lose the incentives to do maintenance. a shortage would arise. landlords get hurt by the policy Question 8 (1 point) The market for hotel rooms 140 130 S 120 P 1 10 D 658388 8 O 50 60 70 80 90 100 110 120 130 Q )A price ceiling of $90 is not binding, it has no impact on the market. A price celling of $90 is binding. it causes a surplus of 30 ) A price celling of $90 is binding. It causes a shortage of 30