Use the following figure to answer the question: What is the consumer surplus in this market when there is a price floor created at the "price above equilibrium" line? Price A B C D E LL Supply Price above equilibrium Demand Quantity A+B (area above equilbrium price and below demand, up to the quantity with the restriction) O A (area below demand and above the price above the equilbrium line) A+B+E (area under the demand above the equilbrium price) A+B+C (area under the demand over to the quantity resulting from regulation)

Use the following figure to answer the question: What is the consumer surplus in this market when there is a price floor created at the "price above equilibrium" line? Price A B C D E LL Supply Price above equilibrium Demand Quantity A+B (area above equilbrium price and below demand, up to the quantity with the restriction) O A (area below demand and above the price above the equilbrium line) A+B+E (area under the demand above the equilbrium price) A+B+C (area under the demand over to the quantity resulting from regulation)

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 2WNG

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