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Suppose That the Equilibrium Price in the Market for Widgets

Question 134

Multiple Choice
Suppose that the equilibrium price in the market for widgets is $8.If a law increased the minimum legal price for widgets to $9,what would happen to producer surplus A)It would necessarily increase even if the higher price resulted in a surplus of widgets. B)It would necessarily decrease because the higher price would create a surplus of widgets. C)It might increase or decrease. D)It would be unaffected.

Suppose that the equilibrium price in the market for widgets is $8.If a law increased the minimum legal price for widgets to $9,what would happen to producer surplus


A) It would necessarily increase even if the higher price resulted in a surplus of widgets.
B) It would necessarily decrease because the higher price would create a surplus of widgets.
C) It might increase or decrease.
D) It would be unaffected.

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