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How does a price floor set above the equilibrium level affect quantity demanded and quantity supplied?

What is consumer surplus? How is it illustrated on a demand and supply diagram?

What is total surplus? How is it illustrated on a demand and supply diagram?

What is the relationship between total surplus and economic efficiency?

Explain why the following statement is false: "In the goods market, no buyer would be willing to pay more than the equilibrium price."

Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.

How do you suppose the demographics of an aging population of "Baby Boomers" in the United States will affect the demand for milk? Justify your answer.

Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?

Can you propose a policy that would induce the market to supply more rental housing units?

The computer market in recent years has seen many more computers sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each. a. A rise in demand b. A fall in demand c. A rise in supply d. A fall in supply