Figure 4-11 Figure 4-11 shows the demand and supply curves for the coffee market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at $7.00.
-Refer to Figure 4-11. What is the value of consumer surplus after the imposition of the price floor?

Question

Figure 4-11  Figure 4-11 shows the demand and supply curves for the coffee market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at $7.00.
-Refer to Figure 4-11. What is the value of consumer surplus after the imposition of the price floor?

Quizplus · Accepted Answer

The consumer surplus after the imposition of the price floor is calculated based on the area below the demand curve and above the price floor, up to the quantity sold. The correct value is $1,500.

Figure 4-11 Figure 4-11 Shows the Demand and Supply