What is consumer/producer surplus when a price ceiling is imposed on a perfectly competitive firm?
-
Ok, so I've graphed this and everything and I'm pretty sure that consumer and producer surplus in a perfectly competitive firm BEFORE the price ceiling are both zero. Am I right? But then when I impose a price ceiling, I'm confused as to what happens to consumer and producer surplus. I know typically, consumer surplus increases, producer surplus decreases but that is when you have a demand that is not perfectly elastic or horizontal and is equal to the price. So, what would happen to the producer and consumer surplus? My guess is that consumer surplus will increase but I have no clue for producer surplus. Thanks in advance!
-
Answer:
I've delivered the answer,but your question is just disappeared somewhere.I guess you have deleted it.Why?
ilovehis... at Yahoo! Answers Visit the source
Related Q & A:
- What's it like to do a day of work experience in a preschool?
- What type of mattress is best for a bad back, firm or soft?Best solution by Yahoo! Answers
- What's the HTML code for a scroll box on top of a picture?Best solution by Yahoo! Answers
- What are the chances of getting a job in the US with a European Degree?Best solution by Yahoo! Answers
- What must a market have to be considered a competitive market?Best solution by Yahoo! Answers
Just Added Q & A:
- How many active mobile subscribers are there in China?Best solution by Quora
- How to find the right vacation?Best solution by bookit.com
- How To Make Your Own Primer?Best solution by thekrazycouponlady.com
- How do you get the domain & range?Best solution by ChaCha
- How do you open pop up blockers?Best solution by Yahoo! Answers
For every problem there is a solution! Proved by Solucija.
-
Got an issue and looking for advice?
-
Ask Solucija to search every corner of the Web for help.
-
Get workable solutions and helpful tips in a moment.
Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.