-Refer to the diagram above.Assume that a price floor is imposed at point V,i.e. ,the price is now represented by the distance 0V,and that the government vows to purchase any excess supply.The loss of total economic surplus due to the price floor is represented by the area
A) XMN.
B) VYT.
C) LTW.
D) WRP.
E) NLW.

Question

-Refer to the diagram above.Assume that a price floor is imposed at point V,i.e. ,the price is now represented by the distance 0V,and that the government vows to purchase any excess supply.The loss of total economic surplus due to the price floor is represented by the area
A) XMN. 
B) VYT. 
C) LTW. 
D) WRP. 
E) NLW.

Quizplus · Accepted Answer

The Answer of 
-Refer to the diagram above.Assume that a price floor is imposed at point V,i.e. ,the price is now represented by the distance 0V,and that the government vows to purchase any excess supply.The loss of total economic surplus due to the price floor is represented by the area
A) XMN. 
B) VYT. 
C) LTW. 
D) WRP. 
E) NLW.

-Refer to the Diagram Above