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If the Intended Aim of the Price Floor Set in the Graph

Question 65

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) the policy to be effective if area C is larger than area E. B) the policy to be effective if area E + B is larger than C +D + F. C) the policy to be ineffective if area B is larger than area E. D) the policy to be ineffective if area E + B is larger than A+C+D+ F. 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) the policy to be effective if area C is larger than area E.
B) the policy to be effective if area E + B is larger than C +D + F.
C) the policy to be ineffective if area B is larger than area E.
D) the policy to be ineffective if area E + B is larger than A+C+D+ F.

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