Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R 0 .
-Refer to Figure 4-5.What is the area that represents consumer surplus after the imposition of the ceiling?

Question

Figure 4-5  Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R 0 .
-Refer to Figure 4-5.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 areas A + B + D.

Figure 4-5 Figure 4-5 Shows the Market for Apartments