File:Efficiency and Price Floors and Ceilings.jpg
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Summary
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English: (a) The original equilibrium price is $600 with a quantity of 20,000. Consumer surplus is T + U, and producer surplus is V + W + X. A price ceiling is imposed at $400, so firms in the market now produce only a quantity of 15,000. As a result, the new consumer surplus is T + V, while the new producer surplus is X. (b) The original equilibrium is $8 at a quantity of 1,800. Consumer surplus is G + H + J, and producer surplus is I + K. A price floor is imposed at $12, which means that quantity demanded falls to 1,400. As a result, the new consumer surplus is G, and the new producer surplus is H + I. |
| Date | |
| Source | https://openstax.org/details/books/principles-microeconomics (CNX_Econ_C03_028.jpg) |
| Author | OpenStax College |
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| Date/Time | Thumbnail | Dimensions | User | Comment | |
|---|---|---|---|---|---|
| current | 02:57, 21 September 2017 | | 780 × 338 (90 KB) | Dave Braunschweig | User created page with UploadWizard |
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