Exam dos - Exam dos Ch.4 1. What two roles does the market...

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Exam dos Ch.4 1. What two roles does the market system play in dealing with the problems of scarcity? How do these roles differ? 2. When the market rations the existing supply of a good, who gets it? Why might people object to the fairness to this result? 3. What are price ceilings and price floors ? How else might goods be rationed if the market is not able to reach an equilibrium? 4. How does the market reassert itself when price ceilings or floors are imposed?
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5. What is consumer surplus? How can you measure the consumer surplus that consumers receive from purchasing a given quantity of a good from the demand curve for that good? Understand Figure 4.6. 6. What is producer surplus? How can you measure the producer surplus that producers receive from selling a given quantity of a good from the supply curve for that good? Understand Figure 4.7. 7. What happens to the sum of producer and consumer surplus at the equilibrium of a competitive market? 8. What is
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Exam dos - Exam dos Ch.4 1. What two roles does the market...

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