-The above figure shows supply and demand curves for milk.In an effort to help farms,the government passes a law that establishes a $3 per gallon price support,but allows farmers to decide how much milk to produce.The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon.The welfare loss of this price support is
A) j.
B) f + g.
C) b + c.
D) f + g + h + i + j.

Question

-The above figure shows supply and demand curves for milk.In an effort to help farms,the government passes a law that establishes a $3 per gallon price support,but allows farmers to decide how much milk to produce.The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon.The welfare loss of this price support is
A) j. 
B) f + g. 
C) b + c. 
D) f + g + h + i + j.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows supply and demand curves for milk.In an effort to help farms,the government passes a law that establishes a $3 per gallon price support,but allows farmers to decide how much milk to produce.The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon.The welfare loss of this price support is
A) j. 
B) f + g. 
C) b + c. 
D) f + g + h + i + j.

-The Above Figure Shows Supply and Demand Curves for Milk