Screenshot 2019-05-03 at 23.30.01.png - 17 Suppose the market is initially in equilibrium Then the government imposes a binding price floor then the

Screenshot 2019-05-03 at 23.30.01.png - 17 Suppose the...

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Unformatted text preview: 17. Suppose the market is initially in equilibrium. Then the government imposes a binding price floor, then the price control (a) causes the quantity demanded to decrease, relative to the initial equilibrium. (b) causes the producer surplus to increase, relative to the initial equilibrium. (c) results in some firms being more successful than others in selling their goods. (d) More than one of the above is correct. * *...
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