Table 6-3 The Following Table Contains the Demand Schedule and Supply Schedule

question 37

Multiple Choice

Table 6-3
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
-Refer to Table 6-3. Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting shortage is

• A)0 units.
• B)2 units.
• C)5 units.
• D)7 units.

Identify the requirements and conditions for engaging in third-degree price discrimination.

Comprehend the profitability and conditions for peak-load pricing.

Recognize the differences between intertemporal price discrimination and peak-load pricing.

Analyze the economic efficiency of different market structures under price discrimination scenarios.