Exhibit 4-8 -Refer to Exhibit 4-8. Suppose That Wheat Producers Lobby the Wheat

Exhibit 4-8

-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What has happened to the consumers' surplus as a result of the imposition of the price floor?

A) consumers' surplus has gone down by (area 2 + 4)
B) consumers' surplus has risen by (area 2 + 4)
C) consumers' surplus has gone down by (area 3 - area 5)
D) consumers' surplus has risen by (area 2 + 3)