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Figure 4-8 Shows the Market for Apartments in Springfield

Question 231

Multiple Choice

Figure 4-8 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1,000 per month. -Refer to Figure 4-8.Suppose that instead of a rent ceiling,the government imposed a price floor of $2,000 per month for apartments.What is the value of producer surplus after the imposition of the price floor? A) $40,000 B) $240,000 C) $270,000 D) $290,000 Figure 4-8 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1,000 per month.
-Refer to Figure 4-8.Suppose that instead of a rent ceiling,the government imposed a price floor of $2,000 per month for apartments.What is the value of producer surplus after the imposition of the price floor?


A) $40,000
B) $240,000
C) $270,000
D) $290,000

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