QUESTION 11 2 points Save Answer Which of the following statements are correct i

Question

QUESTION 11 2 points Save Answer Which of the following statements are correct if the government fixes the price for a product below equilibrium? Consumer Surplus will increase while Producer Surplus will decrease. Consumer and Total Surplus will increase Consumer surplus will decrease and Producer surplus will increase Producer and Total Surplus will incrreae QUESTION 12 3 points Save Answer The equilibrium price for one bedroom one bath houses in Detroit was $500 a month. Detroit city government thinks $500 is too much and imposes a price of only $400. The number of apartments rented falls from 40,000 to 34,000. This is an example of government imposing a price demand for the apartments is 41,000, the shortage is. and if floor; 7,000 floor; 1,000 ceiling; O ceiling; 7,000

Explanation / Answer

Q11
Answer
Option first
ceiling
7000
The consumer surplus is the area above price and below demand curve
the minimum price control is called price ceiling and that create shortage because demand is higher than supply
shortage=demand-supply
=41000-34000=7000

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