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If the price ceiling or price floor is ineffective, are the new consumer surplus, producer surplus and quantity supplied equal to the ones in a free market since it has no effect. Or is it equal to 0?
And also, when the price ceiling is effective does the new consumer surplus compared to the equilibrium goes up, or goes down? (please provide explanation)
A public good, such as a community's emergency warning sirens
Discuss binding price ceiling and binding price floor with an example. Your answersmust companytwo diagrams, one for each. Youare allowed
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Suppose that long term interest rates in the economy were increasing due to strong economic growth and demand for loans in the world economy. Meanwhile suppose that the Fed was holding down its federal funds rate target. What would probably be happen..
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Think of a time when you had to call technical support for a device or appliance. Share this experience with your peers and consider the following:
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