Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 18

In which of the following situations can you say, without further information, that consumer surplus decreases relative to the market equilibrium level? a. Your state passes a law that pushes the interest rate (i.e., the price) for payday loans below the equilibrium rate.
B) The federal government enforces a law that raises the price of dairy goods above the equilibrium.
C) Your city passes a local property tax, under which buyers of new houses have to pay an additional 5 percent on top of the purchase price.
D) The government lowers the effective price of food purchases through a food-stamp program.