In order to have an impact,a ________ must be set below the equilibrium price,and when this occurs,________.
A) price ceiling; consumer surplus increases
B) price floor; consumer surplus decreases
C) price ceiling; producer surplus decreases
D) price support; total revenue increases
E) price support; consumer surplus increases

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price decreases producer surplus because producers are forced to sell at a lower price than what the market would naturally allow, reducing their potential earnings.

In Order to Have an Impact,a ________ Must Be Set