The following figure shows the demand and supply curves for bottled water.

-Refer to the figure above.If a price control is imposed at $8,what is the loss in producer surplus?
A) $30
B) $60
C) $90
D) $120

Question

The following figure shows the demand and supply curves for bottled water.
 
-Refer to the figure above.If a price control is imposed at $8,what is the loss in producer surplus?
A) $30 
B) $60 
C) $90 
D) $120

Quizplus · Accepted Answer

The loss in producer surplus is calculated by finding the area of the triangle formed between the original equilibrium price and the price control at $8. The area of this triangle represents the loss in producer surplus, which is $60.

The Following Figure Shows the Demand and Supply Curves for Bottled