Under a binding price ceiling, what does the change in producer surplus represent?
A) The gain in surplus for those sellers who are still willing to supply the product at the lower price.
B) The loss in surplus associated with those units that used to be produced at the higher price but are no longer produced at the lower price.
C) The gain in surplus associated with the excess demand created by the price ceiling policy.
D) Both A and B are correct.
E) Both A and C are correct.
B
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Adam Smith
A) is responsible for refining the model of supply and demand. B) is the author of this text. C) is considered the founder of economics. D) introduced the concept of ceteris paribus to the discussion of supply and demand.
The fact that assets of the political opponents of the U.S. were frozen in U.S. banks
A) was challenged as unconstitutional. B) lead to an increased amount of funds being placed in Eurobanks. C) lead to a violation of the Law of One Price. D) lead to the Cold War. E) lead to a violation of Regulation Q.
As new firms enter a competitive price-searcher market, it can be expected that
a. market price will increase. b. the output of existing firms will increase. c. profits of existing firms will increase. d. market demand should decrease. e. profits of existing firms will decrease
Patent protection is one way to deal with technology spillovers
a. True b. False Indicate whether the statement is true or false