Table 4-14 -Refer to Table 4-14. the Equations Above Describe the Demand

question 226

Multiple Choice

Table 4-14

-Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of economic surplus in this market?

• A) $50 thousand
• B) $112.5 thousand
• C) $225 thousand
• D) $337.5 thousand

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Definitions:

Price Control

Government-imposed limits on the prices that can be charged for goods and services, typically used to curb inflation or prevent shortages and surpluses.

Price Floor

A government or regulatory minimum price set above the equilibrium price, preventing market forces from reducing prices below that level, often applied to agricultural products.

Price Controls

Government-imposed limits on the prices charged for goods and services in a market, typically to curb inflation or protect consumers.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.