Make a distinction between price ceilings and price floors

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1. Share your opinion on the follwing questionsa) What is utility-maximizing rule ?

b)What is indifference curve and why does it slope downward.(see Appendix)?

2.a) Make a distinction between price ceilings and Price floors.(Give examples of each of the price controls.

b) Define Price elasticity of demand. If a firm`s demand curve is less elastic(less than 1), should it raise or lower the price in order to improve its total revenue.

c) Make distinction between normal goods and inferior goods. Provide examples. Which elasticity measure (price, income or cross elasticity) classifies goods as inferior and normal goods.

d)Why different consumers (corporate versus residential) pay different prices for the use of electricity (power)?

e) What is a deadweight loss?

Reference no: EM132604834

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