Figure 2. 25 20 Supply Price 15 10 Demand 5. 10 15 20 25 Quantity (thousands) Refer to the figure above. If a price floor of $12 is imposed on this good, what is the consequence? O Nothing, the price floor is nonbinding O A surplus of 3000 units O A shortage of 3000 units. O A deadweight loss of 3000 units.

Figure 2. 25 20 Supply Price 15 10 Demand 5. 10 15 20 25 Quantity (thousands) Refer to the figure above. If a price floor of $12 is imposed on this good, what is the consequence? O Nothing, the price floor is nonbinding O A surplus of 3000 units O A shortage of 3000 units. O A deadweight loss of 3000 units.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 9SCQ: Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the...

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