Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
When the ceiling is imposed, two things happen: Buyers would like to purchase more at the lower price, but sellers are willing now to sell less.
If you want to change selection, open document below and click on "Move attachment"

3.13. Market Interference: The Negative Impact on Total Surplus
#13; Prior to imposition of the ceiling price, equilibrium occurs at (P*, Q*), and total surplus equals the area given by a + b + c + d + e. It consists of consumer surplus given by a + b, and producer surplus given by c + d + e. <span>When the ceiling is imposed, two things happen: Buyers would like to purchase more at the lower price, but sellers are willing now to sell less. Regardless of how much buyers would like to purchase, though, only Q′ would be offered for sale. Clearly, the total quantity that actually gets traded has fallen, and this has some seri


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details


Discussion

Do you want to join discussion? Click here to log in or create user.