--%>
Assignment Help - homework help

Effect of below the market-clearing level price ceiling

Assume the supply curve for a good is completely inelastic. If the government imposed a price ceiling below the market-clearing level, would deadweight loss result? Describe.
While the supply curve is completely inelastic, the imposition of an effective price ceiling transfers all loss in producer surplus to consumers. Consumer surplus increases by the difference between the market-clearing price and the price ceiling times the market-clearing quantity. Consumers capture all reduction in total revenue. Thus, no deadweight loss occurs.

   Related Questions in Biology

  • Q : Define Organizational Design

    Organizational Design: This refers to the way that an organization aligns and structures its people and resources. Most of the organizations put a lot of effort into the design of their association based on the belief that the design has a big impact

    		•
  • Q : What is Value Stream Mapping Value

    Value Stream Mapping: It is a lean technique which helps in manufacturing and implementing efficiency in the organization. The necessary steps for implementation are: 1. Recognize the target family

    		•
  • Q : Illustrations of secretory cells

    Illustrations of secretory cells: Exocrine and Endocrine pancreatic cells, parathyroid and thyroid endocrine cells, adenohypophysis, adrenal & pineal endocrine cells, the numerous kinds of gastric exocrine and endocrine cells, the mucous secretory

    		•
  • Q : Describe pentoses Describe pentoses ?

    Describe pentoses? What are the various roles of pentoses in RNA and DNA molecules?

    		•
  • Q : Antagonistic mechanisms control

    How can antagonistic mechanisms control homeostatic regulation?

    		•
  • Q : Body parts of human digestive system

    Name the organs of body part of the human digestive system?

    		•
  • Q : Behavioral theory of the leadership

    Behavioral theory of the leadership The initiating structure, which refers to leader  Employee centered : in the employee central oriented , the leader developi

    		•
  • Q : Illustrations of structural function of

    What are some illustrations of structural function of the organic molecules?

    		•
  • Q : Circulatory and respiratory systems Do

    Do echinoderms contain circulatory and respiratory systems?

    		•
  • Q : Kaizen Process Improvement Assignment

    The evening/professional students played a game this week called the Paper Airplane Game. Students formed teams of 5 or 6 and each team was tasked with developing and implementing a paper airplane manufacturing process.  The cameras focused mostly on one team, the YELLOW airplane team. We al

    		•