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Use the attached Graph to answer the following:




Use the attached Graph to answer the following;a) If a price ceiling of 6$ is imposed, what are the resulting shortage and full economic price?;b) If a price floor of $12 is imposed what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units?;c) At the $10 equilibrium price, if an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producters? The number of units sold?;d) Calculate the level of consumer and producer surplus when demand and supply are given D and S0 respectively.;e) Suppose demand is D and supply is S0. Would a price ceiling of $2 benefit any consumers? Explain.


Paper#28937 | Written in 18-Jul-2015

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