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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 9
Suppose equilibrium price in a market is $5,and then a price ceiling of $3 is imposed. Assume (as in thechapter)that those who value the product the most are able to buy whatever quantity is available,and there is no black market.
a. If supply is completely price inelastic between $3 and $5,is there a deadweight loss? Briefly,why or why not?
b. If demand is completely price inelastic between $3 and $5,is there a deadweight loss? Briefly,why or why not?
a. If supply is completely price inelastic between $3 and $5,is there a deadweight loss? Briefly,why or why not?
b. If demand is completely price inelastic between $3 and $5,is there a deadweight loss? Briefly,why or why not?
Explanation
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a)The initial market condition is shown ...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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