-The above figure shows supply and demand curves for milk.In an effort to help farmers,the government passes a law that establishes a $3 per gallon price support.As a result,consumer surplus falls by
A) a.
B) b + f.
C) f + g.
D) b + f - c.

Question

-The above figure shows supply and demand curves for milk.In an effort to help farmers,the government passes a law that establishes a $3 per gallon price support.As a result,consumer surplus falls by
A) a. 
B) b + f. 
C) f + g. 
D) b + f - c.

Quizplus · Accepted Answer

The consumer surplus falls by the area b + f because the price support increases the price above the equilibrium price, reducing the consumer surplus to the area above the price support level and below the demand curve.

-The Above Figure Shows Supply and Demand Curves for Milk