--%>
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 radio immuno assay Define radio

    Define radio immuno assay?

    		•
  • Q : Define Data Communications Data

    Data Communications: It refers to sending digital messages employing communication technology. The Communication technology employed in data communications comprises wires, radio frequencies and optic fibers. In the United States, the Federal Communic

    		•
  • Q : Explain the term immunogen Explain the

    Explain the term immunogen?

    		•
  • Q : Fabaceae family plz i need the

    plz i need the description of this topic soon

    		•
  • Q : Managerial implication - Organizational

    Perception in business situation: 1)     Perception and motivation: perception of the workplace plays a major role in motivation. Suppose an employee is experiencing some unexpected money trouble. Because of her disposition (she is worried) and the sal

    		•
  • Q : Define the term antigen Define the term

    Define the term antigen? Answer: Antigen is any particle, substance or infectious agent identified as foreign to the body. The contact of antigen with the body encou

    		•
  • Q : Organs of excretory system State some

    State some of the organs of excretory system?

    		•
  • Q : Mitochondria as the power plants of

    Why can mitochondria be though as the power plants of aerobic cells?

    		•
  • Q : Goal Management and Local Talent

    Goal Management and Local Talent Management: Minimum criteria for employees should be set from the global headquarters and that should be mandatory when selection procedure is done. After short listing the candidate on the basis of minimum criteria, t

    		•
  • Q : What is Bex Bex : It stands for

    Bex: It stands for Business Explorer. Bex allows end user to position reports, view reports, examine information and can run queries. Bex has some components: Bex analyzer, Bex Browser, Bex Map, and Bex Web.

    		•