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8 Jun 2018
Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 17) Refer to Figure 5-5. Suppose this market for gardening services is in a free-market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be A) a loss of economic surplus of the areas 6 and 7. B) a loss of economic surplus of the areas 2 and 6. C) a loss of economic surplus of the area 1. D) a loss of economic surplus of the areas 2, 3, 4, 6, and 7. E) a loss of economic surplus of the areas 1, 2, 3, and 4.
Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 17) Refer to Figure 5-5. Suppose this market for gardening services is in a free-market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be A) a loss of economic surplus of the areas 6 and 7. B) a loss of economic surplus of the areas 2 and 6. C) a loss of economic surplus of the area 1. D) a loss of economic surplus of the areas 2, 3, 4, 6, and 7. E) a loss of economic surplus of the areas 1, 2, 3, and 4.
Nelly StrackeLv2
9 Jun 2018
