Figure 4-6

Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf.
-Refer to Figure 4-6.What is the area that represents producer surplus after the imposition of the price floor?

Question

Figure 4-6
  
Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf.
-Refer to Figure 4-6.What is the area that represents producer surplus after the imposition of the price floor?

Quizplus · Accepted Answer

Producer surplus after the imposition of the price floor is represented by the area above the equilibrium price and below the price floor. This area is B + E.

Figure 4-6 Figure 4-6 Shows the Demand and Supply Curves for the and Supply