Figure SEQ Figure 1
-When considering the imposition of a price minimum of $10 in Figure 1, the group that will benefit the most is
A)Consumers
B)Producers
C)Both consumers and producers
D)None, the net gain is zero

Question

Figure SEQ Figure  1 
-When considering the imposition of a price minimum of $10 in Figure 1, the group that will benefit the most is
A)Consumers 
B)Producers 
C)Both consumers and producers 
D)None, the net gain is zero

Quizplus · Accepted Answer

When the price minimum is imposed, the price will increase from P1 to P2, which is $10. This increase in price benefits producers as they are now receiving a higher price for their products. Consumers, on the other hand, are negatively impacted as they are now forced to pay a higher price for the same product. Therefore, the group that will benefit the most is producers, making choice B the correct answer.