Examlex

Solved

The Following Figure Depicts Two Industries, Each Facing an Identical

question 171

Multiple Choice

The following figure depicts two industries, each facing an identical supply curve.
The following figure depicts two industries, each facing an identical supply curve.    -Refer to the figure above.Which of the following is true? A)  Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry A. B)  Increasing equity by decreasing the price by $1 in both industries, using a price ceiling policy below the equilibrium price, requires a smaller loss in efficiency in industry B. C)  Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a greater loss in efficiency in industry A. D)  Increasing equity by increasing the price by $1 in both industries, using a price floor policy above the equilibrium price, requires a smaller loss in efficiency in industry B.
-Refer to the figure above.Which of the following is true?


Definitions:

Related Questions