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-Refer to the Diagram Above

Question 107

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.The triangle FEC represents the A) value of the trades that will be made after the price ceiling is imposed. B) reduction in producer surplus due to the price ceiling. C) increase in total economic surplus due to the price ceiling. D) the value of the trades that are not made after the price ceiling is imposed. E) reduction in consumer surplus due to the price ceiling.
-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.The triangle FEC represents the


A) value of the trades that will be made after the price ceiling is imposed.
B) reduction in producer surplus due to the price ceiling.
C) increase in total economic surplus due to the price ceiling.
D) the value of the trades that are not made after the price ceiling is imposed.
E) reduction in consumer surplus due to the price ceiling.

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