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.
Correct Answer:
Verified
Q105: Consider the following demand and supply schedules
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