Macroeconomics
If a government sets a price ceiling below the equilibrium price, what is the likely effect on deadweight loss?
On a supply and demand graph, where is consumer surplus located?
How does an increase in price above equilibrium affect producer surplus?
What is the effect of high transaction costs on market efficiency?
What is deadweight loss?
Using the bowtie model, identify the area of deadweight loss when there is overproduction.
Calculate the total surplus at equilibrium given consumer surplus of \$200 and producer surplus of \$300.
If a government imposes a price floor above equilibrium, what happens to economic surplus?
Why do high transaction costs lead to market failure?
How does pollution exemplify an externality?
