Refer to the figure below. If a price ceiling were imposed at point G, the loss in total economic surplus would be represented by the area ________.
A)FEC
B)DAC
C)GJEF
D)JAE + DGF

Question

Refer to the figure below.  If a price ceiling were imposed at point G, the loss in total economic surplus would be represented by the area ________.
A)FEC 
B)DAC 
C)GJEF 
D)JAE + DGF

Quizplus · Accepted Answer

The loss in total economic surplus is equal to the loss in consumer surplus (the area represented by EHC)plus the loss in producer surplus (the area represented by FHC).

Refer to the Figure Below