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marusya05 [52]
3 years ago
14

Refer to the passage.

Advanced Placement (AP)
1 answer:
ella [17]3 years ago
5 0

Answer:

The stalemate and high casualties caused by trench warfare on the western front

Explanation:

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12. I once asked Red Cloud if he could recall having ever been afraid, and in reply he told me this story. He was about sixteen years old and had already been once or twice upon the warpath, when one fall his people were hunting in the Big Horn country, where they might expect trouble at any moment with the hostile Crows or Shoshones.
13. Red Cloud had followed a single buffalo bull into the Bad Lands and was out of sight and hearing of his companions. When he had brought down his game, he noted carefully every feature of his surroundings so that he might at once detect anything unusual, and tied his horse with a long lariat to the horn of the dead bison, while skinning and cutting up the meat so as to pack it to camp.
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Which of the following will occur if the government institutes an effective price ceiling on bottled drinks?
DanielleElmas [232]
The question asks which of the following, but there are no choices. I don't know if it is supposed to be answered in context to a specific situation, so I'll just explain what happens with price ceilings in general.

Assuming the government sets the ceiling below the equilibrium price (where supply and demand cross), demand will be higher while supply will be lower. This is due to the fact that consumers want to buy more since the drinks are cheaper, and producers want to produce fewer bottles since they are not making as much money. This creates a shortage.

The new quantity supplied will be where the supply curve crosses the horizontal price ceiling line, and the new quantity demanded will be where the demand curve crosses the price ceiling.

If we were to draw the graph of supply and demand, the area to the left of the equilibrium point and between the supply and demand curves represents total surplus. The area above the equilibrium price (NOT the price ceiling) and below demand is consumer surplus because there is extra value that consumers are willing to pay, however they don't have to because the price is lower. The area below the equilibrium price and above supply is producer surplus because The price is higher than the minimum value the producer has for the product.

That being said, with a price ceiling in place, the new price is lower and the quantity supplied is less. That means that there is less total surplus. This results in deadweight loss.
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