-Refer to the diagram above.If the government regulates the price of milk and raises it from the equilibrium price of $1.00 to $1.25 per litre,then
A) only consumers who cannot afford milk at $1.25 are worse off.
B) all consumers who previously purchased milk at $1.00 are worse off.
C) no consumers are worse off.
D) every consumer is better off.
E) only those consumers who continue to purchase milk are worse off.

Question

-Refer to the diagram above.If the government regulates the price of milk and raises it from the equilibrium price of $1.00 to $1.25 per litre,then
A) only consumers who cannot afford milk at $1.25 are worse off. 
B) all consumers who previously purchased milk at $1.00 are worse off. 
C) no consumers are worse off. 
D) every consumer is better off. 
E) only those consumers who continue to purchase milk are worse off.

Quizplus · Accepted Answer

When the price of milk is raised from the equilibrium price, all consumers who previously purchased milk at the lower price are worse off because they now have to pay more for the same product.

-Refer to the Diagram Above