Ask Question
BusinessBusiness
26 August, 08:54

Total surplus in a market will increase when the government a. imposes a binding price floor or a binding price ceiling on that market. b. imposes a tax on that market. c. Both a and b are correct. d. Neither a nor b is correct.

+2
Answers (1)
  1. 26 August, 11:14
    0
    D. Neither a nor b is correct.

    Explanation:

    Total surplus is an economic term used to describe the general well-being of the population, it is the sum of the Consumer surplus and the producer surplus.

    Price ceiling is an economic term used buy Government to prevent producers or suppliers from selling above a certain fixed price. Price ceiling does not create surplus it creates insufficiency.

    Price floor is an economic term that is placed by Government below which the products or services can not be sold.

    It can only lead to surplus when for the producers when fixed above the Equilibrium price and shortage when fixed below the Equilibrium price.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Total surplus in a market will increase when the government a. imposes a binding price floor or a binding price ceiling on that market. b. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
You spent the summer building a garage for your home. You purchased tools that cost $350 and wood that cost $4,000. A contractor would charge $25 per hour for the 40 hours of work necessary to build the garage.
Answers (1)
uses job order costing to measure and track product costs. Raleigh has determined that machine hours drive its manufacturing overhead costs.
Answers (1)
A critical part of a brand's message to the market and consumers is to not only be relevant to customers and build credibility, trust, and loyalty, but also present coherent message differentiation of its product or service from the competition.
Answers (1)
According to keynesianism, as more items are being made, what happens to prices? A. the prices increase B. the prices are taxed at a higher rate C. the prices decrease D. the prices stay the same
Answers (2)
The first e-mail mailing lists appeared on military and education research networks. True or false?
Answers (1)
New Questions in Business
Which term refers to the age, gender, education, income, family size, career, and residence of the consumer? a. agenda b. demographic c. psychographic d. target audience
Answers (1)
Which of the following are common accounting myths? (Select all that apply.) Select one or more: a. Accounting focuses only on math. b. Accountants focus only on the past. c. Accounting should be taught at culinary schools.
Answers (1)
As you approach potential investors for you new business, it's important to present them with A. a good, solid business plan. B. your goals for lifelong happiness. C. your highest hopes for success. D. a detailed list of your needs.
Answers (1)
Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is: a.
Answers (1)
The Collins Company forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.
Answers (1)
Home » Business » Total surplus in a market will increase when the government a. imposes a binding price floor or a binding price ceiling on that market. b. imposes a tax on that market. c. Both a and b are correct. d. Neither a nor b is correct.
Sign Up Forgot Password?