The following image 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?
Figure 16.4

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.
Correct Answer:
Verified
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