Use the following to answer question:
-(Figure: Price Controls)Use Figure: Price Controls.The consumer surplus lost to a price floor at point b is equal to the area:
A)abe.
B)egh.
C)bcge.
D)bcke.

Question

Use the following to answer question: 
-(Figure: Price Controls)Use Figure: Price Controls.The consumer surplus lost to a price floor at point b is equal to the area:
A)abe. 
B)egh. 
C)bcge. 
D)bcke.

Quizplus · Accepted Answer

The consumer surplus lost due to a price floor is the area below the demand curve and above the price floor, and to the left of the equilibrium quantity. Therefore, in this case, the area of consumer surplus lost is represented by the triangle BCG.

Use the Following to Answer Question