Exhibit 4-8 Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the change in the total surplus at the price floor, compared to at the equilibrium price? A)There was a gain in total surplus equal to (area 1 + 2 + 3) B)There was a gain in total surplus equal to (area 1 + 2 + 3 + 4 + 5) C)There was a loss in total surplus equal to (area 4 + 5) D)There was a loss in total surplus equal to (area 4 + 5 + 6 )

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The Answer of Exhibit 4-8 Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the change in the total surplus at the price floor, compared to at the equilibrium price? A)There was a gain in total surplus equal to (area 1 + 2 + 3) B)There was a gain in total surplus equal to (area 1 + 2 + 3 + 4 + 5) C)There was a loss in total surplus equal to (area 4 + 5) D)There was a loss in total surplus equal to (area 4 + 5 + 6 )

Exhibit 4-8 Refer to Exhibit 4-8. Suppose That Wheat Producers Lobby the Government for the Government