Multiple Choice
(Figure: Price Ceilings and Consumer Valuation) Refer to thefigure. Suppose a price ceiling of $3 goes into effect. What is theloss of consumer surplus due to the random allocation of pricecontrolled goods compared to the allocation only to the highestvalue users?
A) $90
B) $60
C) $150
D) $30
Correct Answer:
Verified
Related Questions
Q51: Q52: Q53: Do price ceilings misallocate resources?![]()
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A) Yes, because