Assume that a price ceiling is imposed and there is no black market in gasoline. compare the economic surplus in this market when there is no price ceiling to when there is a price ceiling. the price ceiling creates
a. new surplus equal to the area under the demand curve and above the supply curve for units between the quantity with the price ceiling and the equilibrium quantity.
b. a deadweight loss equal to the area under the demand curve and above the supply curve for units up to the quantity with the price ceiling.
c. new surplus equal to the area under the demand curve and above the supply curve for units up to the equilibrium quantity.
d. a deadweight loss equal to the area under the demand curve and above the supply curve for units between the quantity with the price ceiling and the equilibrium quantity.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.

Consider a consumer who is contemplating a new automobile purchase. she has narrowed her decision down to two brands, honda accord and ford taurus. she has identified gas mileage, price, warranty, and styling to be important attributes to consider in her decision