With reference to the graph above,if the intended aim of the price ceiling shown was a net increase in the well-being of consumers,then positive analysis would conclude:
A) the policy was effective,since area A + C is larger than B + D.
B) the policy was effective,since area B is smaller than area D.
C) the policy was ineffective,since D is larger than E.
D) the policy was ineffective,since A + C + D is larger than B + E.
Correct Answer:
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A) a shortage,![]()