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Unformatted text preview: Elasticity and Price Floors When demand is elastic, more sellers are losers and fewer are winners. Price Ceilings Buyers who pay lower prices. Losers: Buyers who no longer buy. Sellers. Society as a whole (lost surplus). Winners: 2 Elasticity and Price Ceilings When supply is elastic, more buyers are losers and fewer are winners. Efficiency Losses from Price Controls Loss of surplus (already covered). Enforcement costs. Wasteful activity by excess demanders or suppliers. Quality degradation....
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- Spring '07