If the price floor of a market is raised,which of the following would happen?
A)The consumer surplus would increase,the producer surplus would decrease and the dead weight loss would decrease
B)The consumer surplus would decrease,the producer surplus would decrease and the dead weight loss would increase
C)The consumer surplus,the producer surplus and the dead weight loss would all decrease
D)The consumer surplus,the producer surplus and the dead weight loss would all increase
E)The consumer surplus would decrease,the producer surplus would increase and the dead weight loss would increase

Question

Quizplus · Accepted Answer

Raising a price floor above the equilibrium price leads to a decrease in consumer surplus, an increase in producer surplus, and an increase in deadweight loss due to reduced market efficiency.

If the Price Floor of a Market Is Raised,which of the Following