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 is the area that represents producer 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 is the area that represents producer surplus after the imposition of the price floor?

Quizplus · Accepted Answer

The area that represents producer surplus after the imposition of the price floor is B, which is the area above the equilibrium price and below the price floor.

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