Figure 4-9 Figure 4-9 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 P f .
-Refer to Figure 4-9. What area represents consumer surplus after the imposition of the price floor?

Question

Figure 4-9  Figure 4-9 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 P f .
-Refer to Figure 4-9. What area represents consumer surplus after the imposition of the price floor?

Quizplus · Accepted Answer

After the imposition of a price floor, consumer surplus is represented by the area above the price floor and below the demand curve, which is area A.

Figure 4-9 Figure 4-9 Shows the Demand and Supply