Compare a market operating at a quantity lower than equilibrium (ie. a price floor) with the same market operating at the equilibrium quantity. Which of the following statements are true? a. A price floor will increase the producer and total surplus.
b. It is unclear if the consumer surplus is greater or less at the market operating below equilibrium.
c. A market operating below equilibrium will transfer some producer surplus to consumers
d. A market operating below equilibrium will transfer some consumer surplus to producers.

D

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

A price floor increases producer surplus and reduces consumer surplus

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

The dead weight loss of tax can be determined by calculating the reduction in total surplus as a result of the tax  

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.