Quantitative Analysis of Price Ceilings and Floors: Finding Areas

5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Quantitative Analysis of Price Ceilings and Floors: Finding Areas / Problema 7

Problema 7

What happens to consumer surplus when a price floor is set above the equilibrium price?

Consumer surplus increases.

Consumer surplus remains unchanged.

Consumer surplus decreases.

Consumer surplus becomes negative.