The consumer can suffer a net loss of consumer surplus when the government imposes a binding price ceiling on a good

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    if demand is unitary elastic, causing the deadweight loss of consumer surplus to exceed the gain from the lower price.
     if demand is very inelastic, causing the deadweight loss of consumer surplus to exceed the gain from the lower price.
     if demand is very inelastic, causing the large deadweight loss of producer surplus to exceed the gain in consumer surplus from the lower price.
     if demand is very elastic, causing the deadweight loss of consumer surplus to exceed the gain from the lower price.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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if demand is very inelastic, causing the deadweight loss of consumer surplus to exceed the gain from the lower price.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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