Price (dollars per gallon) 2.00 1.50 1.00 Price Ceiling 60 20 0 10 20 30 40 50 60 70 80 90 100 110 120 Drinking water (in thousands of gallons) The price ceiling depicted in the above figure results in consumer surplus increasing from $30 thousand to $34.5 thousand. producer surplus decreasing from $24 thousand to $6 thousand. O a deadweight loss of $16 thousand. Both answers A and B are correct. S

Price (dollars per gallon) 2.00 1.50 1.00 Price Ceiling 60 20 0 10 20 30 40 50 60 70 80 90 100 110 120 Drinking water (in thousands of gallons) The price ceiling depicted in the above figure results in consumer surplus increasing from $30 thousand to $34.5 thousand. producer surplus decreasing from $24 thousand to $6 thousand. O a deadweight loss of $16 thousand. Both answers A and B are correct. S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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