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

Question 77

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 has happened to the consumers' surplus as a result of the imposition of the price floor? A) consumers' surplus has gone down by (area 2 + 4) B) consumers' surplus has risen by (area 2 + 4) C) consumers' surplus has gone down by (area 3 - area 5) D) consumers' surplus has risen by (area 2 + 3)
-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 has happened to the consumers' surplus as a result of the imposition of the price floor?


A) consumers' surplus has gone down by (area 2 + 4)
B) consumers' surplus has risen by (area 2 + 4)
C) consumers' surplus has gone down by (area 3 - area 5)
D) consumers' surplus has risen by (area 2 + 3)

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