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  • Global IA Diagrams

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    sophia
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    Consumer surplus increases when price decreases below the maximum price consumers are willing to pay, allowing consumers to purchase more units of a good. Producer surplus decreases as price falls below the minimum price producers need to cover costs. A price ceiling set below the market equilibrium price results in a deadweight loss to society as some mutually beneficial transactions that would occur in a free market are now prevented.

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    Consumer surplus increases when price decreases below the maximum price consumers are willing to pay, allowing consumers to purchase more units of a good. Producer surplus decreases as price falls below the minimum price producers need to cover costs. A price ceiling set below the market equilibrium price results in a deadweight loss to society as some mutually beneficial transactions that would occur in a free market are now prevented.

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    8 views2 pages

    Global IA Diagrams

    Uploaded by

    sophia
    Consumer surplus increases when price decreases below the maximum price consumers are willing to pay, allowing consumers to purchase more units of a good. Producer surplus decreases as price falls below the minimum price producers need to cover costs. A price ceiling set below the market equilibrium price results in a deadweight loss to society as some mutually beneficial transactions that would occur in a free market are now prevented.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 2

    Consumer Surplus Consumer Surplus

    Producer Surplus Tax Revenue Producer Surplus Tax Revenue


    Societal Societal Societal Societal
    Loss Loss Loss Loss

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