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FIGURE 5-5 -Refer to Figure 5-5.Suppose This Market for Gardening Services Is

Question 110

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  FIGURE 5-5 -Refer to Figure 5-5.Suppose this market for gardening services is in a free-market equilibrium.If the government then imposes a price floor of $50 per hour for gardening services,the result would be A) a loss of economic surplus of the areas 6 and 7. B) a loss of economic surplus of the areas 2 and 6. C) a loss of economic surplus of the area 1. D) a loss of economic surplus of the areas 2,3,4,6,and 7. E) a loss of economic surplus of the areas 1,2,3,and 4. FIGURE 5-5
-Refer to Figure 5-5.Suppose this market for gardening services is in a free-market equilibrium.If the government then imposes a price floor of $50 per hour for gardening services,the result would be


A) a loss of economic surplus of the areas 6 and 7.
B) a loss of economic surplus of the areas 2 and 6.
C) a loss of economic surplus of the area 1.
D) a loss of economic surplus of the areas 2,3,4,6,and 7.
E) a loss of economic surplus of the areas 1,2,3,and 4.

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