Click on the icon to read the news clip, then answer the following questions The graph shows the market for milk in Venezuela when a price control is in effect Draw a shape that represents) 1) consumer surplus Label it CS 2) producer surplus Label it PS 3) the deadweight loss Label it DWL Also draw a shape that show the resources lost from time spend in line Label it Loss Moving from a milk market with no price controls to a milk with price controls surplus and producer surplus OA. increases, decreases OB. increases, increases OC. decreases, decreases OD. decreases, increases 60- $ 50- 40 40- 30- consumer 20- 300 Price control D 10+ 0 100 200 300 400 500 600 Quantity (gallons of milk) 700 >>> Draw only the objects specified in the question
Click on the icon to read the news clip, then answer the following questions The graph shows the market for milk in Venezuela when a price control is in effect Draw a shape that represents) 1) consumer surplus Label it CS 2) producer surplus Label it PS 3) the deadweight loss Label it DWL Also draw a shape that show the resources lost from time spend in line Label it Loss Moving from a milk market with no price controls to a milk with price controls surplus and producer surplus OA. increases, decreases OB. increases, increases OC. decreases, decreases OD. decreases, increases 60- $ 50- 40 40- 30- consumer 20- 300 Price control D 10+ 0 100 200 300 400 500 600 Quantity (gallons of milk) 700 >>> Draw only the objects specified in the question
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 11P
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