Consider a Market with a Price Ceiling

question 57

Multiple Choice

Consider a market with a price ceiling.If the price ceiling is raised which of the following would happen?

• A)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would decrease
• B)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would increase
• C)The consumer surplus,the producer surplus and the dead weight loss would all decrease
• D)The consumer surplus,the producer surplus and the dead weight loss would all increase
• E)The consumer surplus would decrease,the producer surplus would increase and the dead weight loss would decrease

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Definitions:

Durable Items

Goods or products designed to last for a long period without frequent replacement, typically including appliances, cars, and furniture.

Plant Cover

The layer of vegetation that covers the ground, which can reduce soil erosion and provide habitat for wildlife.

Transpiration

Evaporation of water from aboveground plant parts.

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Regions near the poles of the Earth, characterized by extreme cold and seasonal variations in daylight.