Question8 1 pts Figure 6-10 price 24 20 18 16 14 12 10 2 4 6 8 10 12 14 16 18 20

Question

Question8 1 pts Figure 6-10 price 24 20 18 16 14 12 10 2 4 6 8 10 12 14 16 18 20 uantity Refer to Figure 6-10. A price ceiling set at $6 will be binding and will result in a shortage of 8 units. The deadweight loss will be $16 $6 will be binding and will result in a shortage of 4 units. The deadweight loss will be $32 O $16 will be binding and will result in a shortage of 12 units. The deadweight loss is $8 O $16 will be binding and will result in a shortage of 6 units. The deadweight loss is $64

Explanation / Answer

Q8. Answer is $6 will be binding will result in shortgae of 8 units and the deadweight loss of $16. Explanation: At price $6, demand = 14 and supply =6, there will be shortage off 8 units. Moerover, deadweight loss is = 1/2 *8*4= $ 16. Q9. Answer is Shortage of 85 units Explanation: At price ceiling, the demand= 165 units and supply= 80 units. As demand exceeds supply, there is a shortage of goods by 85 units

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