The figure below shows the market for Good X:

-Refer to the figure above.The region PCCAF shows the ________ after the imposition of the price ceiling.

Question

The figure below shows the market for Good X:
 
-Refer to the figure above.The region PCCAF shows the ________ after the imposition of the price ceiling.

Quizplus · Accepted Answer

The region PCCAF shows the area where consumer surplus is gained after the imposition of a price ceiling. This is because the price ceiling has reduced the price of Good X, allowing consumers to purchase it at a lower price and increasing their overall surplus. The other options (government revenue, producer surplus, and deadweight loss) are not represented by the PCCAF region.

The Figure Below Shows the Market for Good X