Multiple Choice
If the intended aim of the price ceiling set at $6, as shown in the graph, was a net increase in the well-being of consumers, then positive analysis would conclude that the policy was:
A) effective because areas A + C are larger than areas B + D.
B) effective because area B is smaller than area D.
C) ineffective because area D is larger than area E.
D) ineffective because areas A + C + D are larger than areas B + E.
Correct Answer:
Verified
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