Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R₀.
-Refer to Figure 4-5.Suppose that instead of a price ceiling,the government imposed a price floor of R₁.What is the area representing consumer surplus after the imposition of the price floor?

Question

Figure 4-5 Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R<sub>0</sub>. -Refer to Figure 4-5.Suppose that instead of a price ceiling,the government imposed a price floor of R<sub>1</sub>.What is the area representing consumer surplus after the imposition of the price floor? A) A B) A + B + D C) C + E D) B + C + D + E

Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R<sub>0</sub>. -Refer to Figure 4-5.Suppose that instead of a price ceiling,the government imposed a price floor of R<sub>1</sub>.What is the area representing consumer surplus after the imposition of the price floor? A) A B) A + B + D C) C + E D) B + C + D + E

Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R₀.
-Refer to Figure 4-5.Suppose that instead of a price ceiling,the government imposed a price floor of R₁.What is the area representing consumer surplus after the imposition of the price floor?

Quizplus · Accepted Answer

The area representing consumer surplus after the imposition of the price floor is A. This is because the price floor creates a surplus of goods, which lowers the price and increases consumer surplus.

Figure 4-5 Figure 4-5 Shows the Market for Apartments