What is the value of consumer surplus if all the goods are allocated randomly?

1. (Figure: Costs of Price Show more Use the following to answer question 1: Figure 1: Costs of Price Ceilings 1. (Figure: Costs of Price Ceilings) Refer to the figure. What is the dollar amount of the value of wasted time if a price ceiling of $4 is implemented? A) $160 B) $180 C) $320 D) $220 (Figure 1: Costs of Price Ceilings 2) Refer to the figure. What is the dollar amount of lost producer surplus after the price ceiling of $4 has been implemented? A) $90 B) $10 C) $160 D) $8 3. Which statement is TRUE in a market with a price ceiling? A) Buyers and sellers experience unexploited gains from trade. B) Resources are allocated to their most efficient uses. C) The supply of goods is sold by the sellers with the lowest costs. D) The supply of goods is bought by the buyers with the highest willingness to pay. 4. (Figure 2: Price Ceilings and Consumer Surplus) Refer to the figure. There is a price ceiling of $20. What is the value of consumer surplus if all the goods are allocated randomly? A) $120 B) $180 C) $80 D) None of the answers are correct. 6. (Figure 3: Price Ceilings and Consumer Valuation) Refer to the figure. Suppose a price ceiling of $3 goes into effect. What is the loss of consumer surplus due to the random allocation of price-controlled goods compared to the allocation only to the highest-value users? A) $90 B) $60 C) $150 D) $30 Show less

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