Reference: Ref 8-11 (Figure: Price Ceilings and Consumer Valuation) Refer

question 32

Multiple Choice

Reference: Ref 8-11 (Figure: Price Ceilings and Consumer Valuation) Refer to the figure. Suppose a price ceiling of $3 goes into effect. What is the loss of consumer surplus due to the random allocation of price controlled goods compared to the allocation only to the highest value users?

• A) $90
• B) $60
• C) $150
• D) $30

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Definitions:

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.

Ribosome

A cellular organelle composed of RNA and proteins, found throughout the cytoplasm in cells, which is involved in decoding the mRNA to produce proteins.

Nucleic Acid Bases

The parts of DNA and RNA molecules that carry genetic information, specifically adenine, thymine (in DNA), cytosine, guanine, and uracil (in RNA).

Three-Base Combinations

Sequences of three nucleotide bases in DNA or RNA, known as codons, which specify the addition of a specific amino acid to a growing polypeptide chain during protein synthesis.