Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at R 0 .
-Refer to Figure 4-10. What is the area that represents consumer surplus after the imposition of the ceiling?

Question

Figure 4-10  Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at R 0 .
-Refer to Figure 4-10. What is the area that represents consumer surplus after the imposition of the ceiling?

Quizplus · Accepted Answer

Consumer surplus after the imposition of a price ceiling is the area above the price ceiling and below the demand curve, which is represented by A + B + D.

Figure 4-10 Figure 4-10 Shows the Market for Apartments