profile-img
Tanuj Rana posted an Question
September 10, 2020 • 16:43 pm 5 points
  • UGC NET
  • Economics

In country x, cigarettes are forbidden, so people trade cigarettes in a black market. the cigarette demand is qp 12- p and the cigarette supply is qs 2p. the go

In country X, cigarettes are forbidden, so people trade cigarettes in a black market. The cigarette demand is Qp 12- P and the cigarette supply is Qs 2P. The government becomes aware of the black market and reinforces the police so that half of the cigarette supply would be seized and destroyed. How does the consumer surplus change between the two situations? . (a) Remains the same (b) Decreases by 10 Decrea se s by 14 d) None of the above

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers