The market for salmon is in equilibrium. A price ceiling, a price floor, and a quota limit in this market would all have what outcome in common?

a. Inefficiencies created by a quantity exchanged that is less than the equilibrium quantity.

b. Inefficiencies created by a quantity exchanged that is greater than the equilibrium quantity.

c. A supply price that exceeds a demand price.

d. Revenue collected by the government on each unit of salmon harvested.

e. Inefficiencies created by a transfer of surplus from consumers to producers.

Question

Santino Patel

Business

8 September, 09:26

The market for salmon is in equilibrium. A price ceiling, a price floor, and a quota limit in this market would all have what outcome in common?

a. Inefficiencies created by a quantity exchanged that is less than the equilibrium quantity.

b. Inefficiencies created by a quantity exchanged that is greater than the equilibrium quantity.

c. A supply price that exceeds a demand price.

d. Revenue collected by the government on each unit of salmon harvested.

e. Inefficiencies created by a transfer of surplus from consumers to producers.

+5

Answers (1)

Know the Answer?

Charlize Miles · Answer 1

a. Inefficiencies created by a quantity exchanged that is less than the equilibrium quantity.

Explanation:

Dead weight loss created by a quantity exchanged that is less than the equilibrium quantity. Inefficiencies created by a quantity exchanged that is less than the equilibrium quantity. when the total surplus is larger at the equilibrium quantity and price than it will be at any other quantity and price. Deadweight loss is loss in total surplus that occurs when the economy produces at an inefficient quantity.