Business, 16.10.2020 14:01 anonymous176

The government is considering imposing a price floor of $40 in two different health care markets. Assume advocacy groups base their decision-making on the changes in the surplus that affects their side of the market. For instance, as consumer surplus decreases, consumer groups pay lobbyists more to fight the price regulation. As consumer surplus increases, consumer groups pay lobbyists more to support the price regulation. (Producer groups would behave in a similar manner, but would focus on producer surplus.) Which of the following statements is NOT true? a. Consumer advocacy groups would pay lobbyists more in Market B than Market A to fight the price floor.
b. Producer advocacy groups in Market A would pay lobbyists to support the price floor. Producer advocacy groups in Market B would pay lobbyists to fight the price floor.
c. (Ignoring consumer and producer surplus) The number Of equilibrium procedures performed in Market A is affected less than the equilibrium number of procedures in Market B.
d. Consumer surplus would decrease in Market A and Market B after the imposition Of the price floor.

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The government is considering imposing a price floor of $40 in two different health care markets. As...

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