Price Floor Surplus Graph. Figure 2 Interactive Graph. Question 3 1 Pts The Graph Below Represents The Market For Lightbulbs.
Youll notice that the price floor is above the equilibrium price which is 200 in this example. Quantity demanded line S blue represents the supply price vs. B New quantity supplied.
Draw the price floor on the graph.
This analysis shows that a price ceiling like a law establishing rent controls will transfer some producer surplus to. Inefficiency of Price Floors. First of all the price floor has raised the price above what it was at equilibrium so the demanders consumers arent willing to buy as much quantity. An effective price floor at 8 imposes a deadweight loss of.
