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Unformatted text preview: equilibrium price ( P* ), the price floor ( P f ), the quantity that would be sold in competitive equilibrium ( Q* ), and the quantity that is sold with the price floor ( Q f ). b. Compare the economic surplus when there is a price floor with the economic surplus in the market if/when there is no price floor. Use algebra to identify areas of the graph (see Figure 4.7 on page 107). 5) Textbook problem 3.18 on page 128....
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- Spring '07