Multiple Choice
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers,then positive analysis would have us consider:
A) whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
B) whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
C) whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price.
D) whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place.
Correct Answer:
Verified
Related Questions
Q65: Q66: An argument against price floors is:![]()
A) non-price