Refer to the figure below. If a price ceiling were imposed at $4, total economic surplus would be ________, which is ________ less than when the market is unregulated market.
A)$8; $24
B)$24; $8
C)$24; $16
D)$48; $8

Question

Refer to the figure below.  If a price ceiling were imposed at $4, total economic surplus would be ________, which is ________ less than when the market is unregulated market.
A)$8; $24 
B)$24; $8 
C)$24; $16 
D)$48; $8

Quizplus · Accepted Answer

If this market were unregulated, total economic surplus would be $32. With the price ceiling of $4, consumer surplus would be $20, and producer surplus would be $4, so total economic surplus would be $24, which is $8 less than when the market is unregulated.

Refer to the Figure Below