Producers favor a ________ because ________.
A) price ceiling; the equilibrium price increases
B) price support; the deadweight loss is minimized
C) price ceiling; total revenue increases
D) price support; total revenue increases
E) price ceiling; consumer surplus increases

Question

Quizplus · Accepted Answer

Producers favor a price support because it ensures that they receive a higher price for their goods, leading to an increase in total revenue. It also helps to limit the supply of the good, which can lead to a decrease in the deadweight loss.

Producers Favor a ________ Because ________

Producers Favor a Because