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Exhibit 16.5 -Refer to Exhibit 16.5,which Shows a Market Equilibrium.Suppose the Government

Question 109

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Exhibit 16.5
Exhibit 16.5 -Refer to Exhibit 16.5,which shows a market equilibrium.Suppose the government imposes a price floor of $3 on each unit of the good sold in the market.Which of the following is true in such a case? A) The cost to consumer-taxpayers increases by $300. B) The cost to consumer-taxpayers increases by $600. C) The cost to consumer-taxpayers decreases by $300. D) The cost to consumer-taxpayers decreases by $600. E) The cost to consumer-taxpayers decreases by $150.
-Refer to Exhibit 16.5,which shows a market equilibrium.Suppose the government imposes a price floor of $3 on each unit of the good sold in the market.Which of the following is true in such a case?


A) The cost to consumer-taxpayers increases by $300.
B) The cost to consumer-taxpayers increases by $600.
C) The cost to consumer-taxpayers decreases by $300.
D) The cost to consumer-taxpayers decreases by $600.
E) The cost to consumer-taxpayers decreases by $150.

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