Quantitative Analysis of Price Ceilings and Price Floors: Finding Areas

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

Problema 5

If a price floor is set above the equilibrium price, what happens to consumer surplus?

Consumer surplus increases.

Consumer surplus remains unchanged.

Consumer surplus decreases.

Consumer surplus becomes zero.