(Figure: Market for Peanuts I) Suppose the government enacts a price ceiling of $250 per ton. Which of the following statements are TRUE? I. Consumer surplus before the price ceiling is area A + B + C.
II) Consumer surplus after the price ceiling is area D + E.
III) Producer surplus before the price ceiling is area D + E + G.
IV) Producer surplus after the price ceiling is area F.

Question

(Figure: Market for Peanuts I) Suppose the government enacts a price ceiling of $250 per ton. Which of the following statements are TRUE?  I. Consumer surplus before the price ceiling is area A + B + C.
II) Consumer surplus after the price ceiling is area D + E.
III) Producer surplus before the price ceiling is area D + E + G.
IV) Producer surplus after the price ceiling is area F.

Quizplus · Accepted Answer

The Answer of (Figure: Market for Peanuts I) Suppose the government enacts a price ceiling of $250 per ton. Which of the following statements are TRUE?  I. Consumer surplus before the price ceiling is area A + B + C.
II) Consumer surplus after the price ceiling is area D + E.
III) Producer surplus before the price ceiling is area D + E + G.
IV) Producer surplus after the price ceiling is area F.

(Figure: Market for Peanuts I) Suppose the Government Enacts a Price