FIGURE 5-6
-Refer to Figure 5-6. The market for good X is in equilibrium at P 0 and Q0. Now suppose the government imposes a at P1. One result would be .
A) price ceiling; an increase in economic surplus represented by areas 5 and 6
B) price ceiling; a deadweight loss represented by areas 5, 6, 7 and 8
C) price floor; a deadweight loss represented by areas 5, 6, 7 and 8
D) price floor; a deadweight loss represented by areas 2, 6 and 7
E) price ceiling; a deadweight loss represented by areas 5 and 6

Question

FIGURE 5-6
-Refer to Figure 5-6. The market for good X is in equilibrium at P 0 and Q0. Now suppose the government imposes a at P1. One result would be .
A) price ceiling; an increase in economic surplus represented by areas 5 and 6 
B) price ceiling; a deadweight loss represented by areas 5, 6, 7 and 8 
C) price floor; a deadweight loss represented by areas 5, 6, 7 and 8 
D) price floor; a deadweight loss represented by areas 2, 6 and 7 
E) price ceiling; a deadweight loss represented by areas 5 and 6

Quizplus · Accepted Answer

The Answer of  FIGURE 5-6
-Refer to Figure 5-6. The market for good X is in equilibrium at P 0 and Q0. Now suppose the government imposes a at P1. One result would be .
A) price ceiling; an increase in economic surplus represented by areas 5 and 6 
B) price ceiling; a deadweight loss represented by areas 5, 6, 7 and 8 
C) price floor; a deadweight loss represented by areas 5, 6, 7 and 8 
D) price floor; a deadweight loss represented by areas 2, 6 and 7 
E) price ceiling; a deadweight loss represented by areas 5 and 6

FIGURE 5-6 -Refer to Figure 5-6. the Market for Good X Is