Price Ceilings Can Result in a Net Loss in Consumer

question 111

Multiple Choice

Price ceilings can result in a net loss in consumer surplus when the ________ curve is ________.

• A) demand; very elastic
• B) demand; very inelastic
• C) supply; very inelastic
• D) none of the above; price ceilings always increase consumer surplus

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Definitions:

Pareto Diagram

A graphical tool used for decision-making that highlights the most significant factors in a data set according to the Pareto principle.