Figure 9.1.1
-Refer to Figure 9.1.1 above. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will:
A) fall by $200.
B) fall by $300.
C) remain the same.
D) rise by $200.
E) rise by $300.

Question

Figure 9.1.1
-Refer to Figure 9.1.1 above. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will:
A) fall by $200. 
B) fall by $300. 
C) remain the same. 
D) rise by $200. 
E) rise by $300.

Quizplus · Accepted Answer

The Answer is C

Figure 9.1.1 -Refer to Figure 9.1.1 Above. Suppose the Market Is Currently