If agricultural price supports are combined with an output restriction,then there is:
A) an expansion of both consumer surplus and producer surplus due to a deadweight loss
B) an expansion of consumer surplus and reduction in producer surplus due to a deadweight loss
C) a reduction of both consumer surplus and producer surplus due to a deadweight loss
D) the disappearance of any deadweight loss
E) no change in consumer surplus or producer surplus
Correct Answer:
Verified
Q53: A price ceiling means that:
A)the relevant product
Q54: The main reason for agricultural price supports
Q55: Q56: An effective price ceiling will: Q57: If a legal ceiling price is set Q59: The obvious losers from rent controls are:![]()
A)induce new firms
A)tenants
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