Exhibit 7-12 Refer to Exhibit 7-12.When the price floor is implemented,the price changes to ____ and the output bought by consumers changes to ____.

Question

Exhibit 7-12  Refer to Exhibit 7-12.When the price floor is implemented,the price changes to ____ and the output bought by consumers changes to ____.

Quizplus · Accepted Answer

When the price floor is implemented, the price changes from P* to P₂ and the output bought by consumers changes from Q* to Q₂. Choice A and B are incorrect as they either have the wrong price or output bought by consumers. Choice D is incomplete as it does not specify what the quantity bought by consumers is. Hence, the best choice is C.