Question

29. Refer to figure 1.3. If the government imposed a price floor at $75 per ton, a. producer surplus would increase by areas b and c. b. consumer surplus would increase by areas b and d. c. deadweight loss would increase by areas d,e and f. d. this price floor would not effect consumer and producer surplus as this floor is ineffective. e deadweight loss would increase by areas c and e. Figure 1.3