Multiple Choice
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A) then the policy was effective since consumers gained in surplus overall.
B) then the policy was ineffective since consumers gained in surplus overall.
C) then the policy was ineffective since consumers lost surplus overall.
D) then the policy was effective since consumers lost surplus overall.
Correct Answer:
Verified
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