User Account

All Pages

Why additional producer surplus and social surplus falls

Assignment Help Microeconomics
Reference no: EM131634059

Question: If a price floor benefits producers, why does a price floor reduce social surplus? Because the losses to consumers are greater than the benefits to producers, so the net effect is negative. Since the lost consumer surplus is greater than the additional producer surplus, social surplus falls.

Reference no: EM131634059

Questions Cloud

What are the constitutional powers of congress : What are the distinctions between the Constitutional powers of Congress with regards to the President and that of the Supreme Court per the Constitution?
Reflex action in terms of its occurrence : Compare tropism with reflex action in terms of its occurrence, control, nature, rate and stimulus.
What issues do opponents focus on to try to turn voters away : What issues do their opponents focus on to try to turn voters away? How do these women present themselves? How is fund raising involved?
Assessments that differ from assessing adult patients : What are at least 6 aspects of neonatal and pediatric assessments that differ from assessing adult patients?
Why additional producer surplus and social surplus falls : If a price floor benefits producers, why does a price floor reduce social surplus? Because the losses to consumers are greater than the benefits to producers.
Discuss what describes the most sensible crime policy goal : According to Samuel Walker, Sense and Non-sense, what describes the most sensible crime policy goal
What features allow for the most participation by citizens : What features allow for the most participation by citizens? What features of the electoral system may serve to filter, or even obstruct citizen input?
What role do the media play in checking the elected branches : What role do the media and/or the public play in checking the elected branches of the government? give an example please.
Effect of price ceiling on transaction in market : Does a price ceiling increase or decrease the number of transactions in a market? Why? What about a price floor? Assuming that people obey the price ceiling.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd