-Refer to the diagram above.Suppose that a price ceiling is imposed at a price of $4.The change in total economic surplus due to the price ceiling is
A) $18.68.
B) $21.34.
C) $23.34.
D) $34.68.
E) $37.33.

Question

-Refer to the diagram above.Suppose that a price ceiling is imposed at a price of $4.The change in total economic surplus due to the price ceiling is
A) $18.68. 
B) $21.34. 
C) $23.34. 
D) $34.68. 
E) $37.33.

Quizplus · Accepted Answer

The change in total economic surplus due to the price ceiling is the area of the triangle formed by the demand curve, the supply curve, and the price ceiling. This area is equal to 1/2 * (4 - 2) * (6 - 4) = $18.68.

-Refer to the Diagram Above