The current price in the market for cab rides in your neighborhood is $5.00/mile. if the government imposes a price ceiling of $7.50/mile in this market total surplus in this market will:

Respuesta :

Not change - The main purpose of a price ceiling is to enable the government to keep prices low, so that the general public has  access to certain goods and services. In the given question, the current price for cab rides in the market is already low ($5.00/mile). So a government imposing a ceiling of $7.50/ mile (greater than $5.00) will make no difference.