Figure 9.5
-Refer to Figure 9.5. If the government establishes a price floor of $2.50 and farmers grow only the amount of berries that will be sold, total consumer and producer surplus will be

Question

Quizplus · Accepted Answer

The shaded area under the demand curve and above the price floor represents the consumer surplus, which is $150 (1/2 x $3 x 50). The shaded area under the price floor and above the supply curve represents the producer surplus, which is $300 (1/2 x $3 x 100). Therefore, the total consumer and producer surplus is $450.

Figure 9.5 -Refer to Figure 9.5. If the Government Establishes a Price