Question 9 The following are correct statements about a Price Floor, EXCEPT : Qu

ID: 1152541 • Letter: Q

Question

Question 9

The following are correct statements about a Price Floor, EXCEPT:

Question 9 options:

A. It is a regulated price above the equilibrium price

B. It creates an excess of supply in the market.

C. It will for sure increase total consumer's surplus.

D. It creates a Dead Weight Loss.

Question 10

The following are expected effects coming from a Low Quota regulation, EXCEPT:

Question 10 options:

A. The Quantity sold in the market will contract.

B. The price per unit will decline.

C. The regulation creates a DWL.

D. Consumer's surplus (net benefit) will likely decline.

Question 11

Once the government imposes a Tax per unit sold in a market, the following will occur, EXCEPT:

Question 11 options:

A. The (after tax) price paid by the consumer will increase and the (after tax) price received by the producer will decrease.

B. The Tax will reduce consumer's and producer's surpluses (net benefits)

C. The tax will generate a DWL (dead weight loss).

D. The tax will have a higher tax incidence on the most relatively Elastic sector (demand or supply)

Question 12

The following are true statements for the case of Subsidies, EXCEPT:

Question 12 options:

A. A subsidy will decrease the price paid by the consumer, if eligible.

B. The subsidy will increase the price received by the producer.

C. The subsidy will generate a Dead Weight Loss

D. The subsidy will equally benefit both producers and consumers.