-The above figure shows supply and demand curves for milk.If the government passes a law that establishes $3 per month as the legal minimum per gallon price,consumer surplus will be
A)a.
B)a + b + f.
C)a + b + c.
D)c + d + g.

Question

-The above figure shows supply and demand curves for milk.If the government passes a law that establishes $3 per month as the legal minimum per gallon price,consumer surplus will be
A)a. 
B)a + b + f. 
C)a + b + c. 
D)c + d + g.

Quizplus · Accepted Answer

A price floor set above the equilibrium price reduces consumer surplus to area 'a' as consumers pay a higher price and buy less quantity.

-The Above Figure Shows Supply and Demand Curves for Milk