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-Refer to the Diagram Above

Question 104

Multiple Choice

-Refer to the diagram above.Assume that a price ceiling is imposed at point G,i.e. ,the price is now represented by the distance 0G.After the price ceiling is imposed,producer surplus _________ and is now represented by the area _______. A) increases;DBC B) decreases;DGF C) increases;0GFQ<sub>2</sub> D) decreases;0DFQ<sub>2</sub> E) does not change;DGF
-Refer to the diagram above.Assume that a price ceiling is imposed at point G,i.e. ,the price is now represented by the distance 0G.After the price ceiling is imposed,producer surplus _________ and is now represented by the area _______.


A) increases;DBC
B) decreases;DGF
C) increases;0GFQ2
D) decreases;0DFQ2
E) does not change;DGF

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