Exhibit 7-12
-Refer to Exhibit 7-12. Consumer surplus after the price floor is area

Name: Exhibit 7-12 -Refer to Exhibit 7-12. Consumer surplus after the price floor is area
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Question

​Exhibit 7-12 
-Refer to Exhibit 7-12. Consumer surplus after the price floor is area​

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve. After a price floor is implemented, the price is artificially kept above the equilibrium, reducing consumer surplus to the area directly under the demand curve and above the price floor, which is represented by area a.

​Exhibit 7-12 -Refer to Exhibit 7-12. Consumer Surplus After the Price Floor

Exhibit 7-12 -Refer to Exhibit 7-12. Consumer Surplus After the Price Floor