Question
The next 3 questions involve the following supply and demand equations: Supply:p=qDemand:p= 283q 56.The government enacts a price ceiling of $7. What happens to consumer
The next 3 questions involve the following supply and demand equations:
Supply:p=qDemand:p= 283q
56.The government enacts a price ceiling of $7. What happens to consumer surplus? (A) It goes down.
(B) It goes up.
(C) It stays the same.
(D) Fun times.
57.Instead, assume that the government enacts a price ceiling of $5. What happens to consumer surplus?
(A) It goes down.
(B) It goes up.
(C) It stays the same.
(D) A whale.
58.If, instead, there is a price floor of $9, what happens to consumer surplus?
(A) It goes down.
(B) It goes up.
(C) It stays the same.
(D) Drake.
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