-Refer to the diagram above.If producers all agree to raise the price of milk from $1.00 to $1.25,then which of the following is NOT true?
A) Those producers who can sell the milk at $1.25 are better off.
B) Those producers who are unable to sell all their milk at $1.25 are worse off.
C) All consumers who are unable to purchase milk at the increased price are worse off.
D) All those consumers who previously purchased milk at $1.00 are worse off.
E) Those producers who can sell the milk at $1.25 are worse off.

Question

-Refer to the diagram above.If producers all agree to raise the price of milk from $1.00 to $1.25,then which of the following is NOT true?
A) Those producers who can sell the milk at $1.25 are better off. 
B) Those producers who are unable to sell all their milk at $1.25 are worse off. 
C) All consumers who are unable to purchase milk at the increased price are worse off. 
D) All those consumers who previously purchased milk at $1.00 are worse off. 
E) Those producers who can sell the milk at $1.25 are worse off.

Quizplus · Accepted Answer

Producers who can sell milk at the higher price of $1.25 are better off, not worse off, because they receive more revenue per unit sold.

-Refer to the Diagram Above