0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What are the advantages of quantity discount?
Improved coordination to increase total supply chain profits Extraction of surplus through price discrimination
What happens when you Impose a price ceiling below the equilibrium price will lead to higher consumer surplus and an increase in social welfare?
If you impose this low price ceiling, manufacturers will make less and be forced to lay off workers causing higher unemployment. Therefore, social welfare would decreaase, not increase.
Do producers tend to favor price floors or price ceilings?
price floors because, when binding, price floors increase price above the equilibrium and may increase producer surplus.
What happened with the consumer surplus when the price rose?
Consumer surplus = Total amt consumers are willing to pay - Total amt consumers actually paid. Hence, if there is an increase in price of a good, consumer surplus decreases.
What are the advantages and disadvantages of price discrimination to consumers and producers?
An advantage to price discrimination to producers is that firms will be able to increase sales. A disadvantage to consumers is that it can cause things to cost more.
What are the advantages of quantity discount?
Improved coordination to increase total supply chain profits Extraction of surplus through price discrimination
What happens when you Impose a price ceiling below the equilibrium price will lead to higher consumer surplus and an increase in social welfare?
If you impose this low price ceiling, manufacturers will make less and be forced to lay off workers causing higher unemployment. Therefore, social welfare would decreaase, not increase.
Do producers tend to favor price floors or price ceilings?
price floors because, when binding, price floors increase price above the equilibrium and may increase producer surplus.
What happened with the consumer surplus when the price rose?
Consumer surplus = Total amt consumers are willing to pay - Total amt consumers actually paid. Hence, if there is an increase in price of a good, consumer surplus decreases.
What are the advantages and disadvantages of price discrimination to consumers and producers?
An advantage to price discrimination to producers is that firms will be able to increase sales. A disadvantage to consumers is that it can cause things to cost more.
Will an increase in supply cause an increase in consumer suplus?
yes because increase in supply will cause decrease in price so the purchasing power of consumer will increase as a result of surplus
Economically whether price discrimination is social or antisocial?
Anna university MBA question?
What are the effects that price ceiling can have on a product?
a price ceiling results in a shortage because quantity demanded exceeds quantity supplied. it can increase consumer surplus but producer surplus decreases by more causing a deadweight loss in the market.
If both aggregate output and the aggregate price level increase what will happen?
a decrease in need which will in turn surplus the output and decrease the price level. then output will decrease.
Price discrimination is indistinguishable from dumping?
Price discrimination is indistinguishable
Suppose the price of corn is 3.25 per bushel. is there a shortage or surplus of corn at that price?
there is a surplus
What happens to consumer surplus when demand increases?
Consumer surplus is the hypothetical monetary gain of consumers because they are able to buy a product for a price lower than they are originally willing to pay. When demand increases, supply (which is inversely proportional to demand) decreases, and as a result, prices increase. When prices increase, consumer surplus decreases.
