Possible Answers:
- a deadweight loss will be created.
-the production of tires will decrease.
-producer surplus will decrease.
-All of the above will occur in the tire market
2006-10-12 14:17:38 · 6 answers · asked by Anonymous in Education & Reference ➔ Homework Help
A DEADWEIGHT LOSS WILL BE CREATED !!!!!!
2006-10-12 14:20:43 · answer #1 · answered by gerry22122 4 · 1⤊ 0⤋
A deadweight loss will be created, because the sellers lose money and pass on that loss to the consumers.
2006-10-12 14:23:33 · answer #2 · answered by Manan T 3 · 1⤊ 0⤋
It is dead-weight. Passed to the consumer, like the price of fuel in shipping. It something no one has control over and is part of business and economics.
This based on supply and demand. You sell so many tires as they are a NEED in society, so, production and surplus stay consistent with consumer demand regardless of Price, just like Fuel.
2006-10-12 14:27:14 · answer #3 · answered by Snaglefritz 7 · 0⤊ 0⤋
the production of tires will decrease
2006-10-12 14:24:26 · answer #4 · answered by fxpkim 1 · 0⤊ 1⤋
The cost will be passed on to consumers.
2006-10-12 14:20:35 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Have you even tried to figure it out?
2006-10-12 14:20:34 · answer #6 · answered by Ronnie 3 · 0⤊ 1⤋