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Exhibit 4-8 -Refer to Exhibit 4-8. Suppose That Wheat Producers Lobby the Wheat

Question 18

Multiple Choice

Exhibit 4-8
Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P<sub>F</sub>. What is the size of the total surplus at P<sub>F</sub>? A) area 1 + 2 + 3 B) area 1 + 2 + 3 + 4 C) area 1 + 2 + 3 + 4 + 5 D) area 1 + 2 + 3 + 4 + 5 + 6
-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the total surplus at PF?


A) area 1 + 2 + 3
B) area 1 + 2 + 3 + 4
C) area 1 + 2 + 3 + 4 + 5
D) area 1 + 2 + 3 + 4 + 5 + 6

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