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Quantitative Analysis of Price Ceilings and Floors: Finding Areas
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Quantitative Analysis of Price Ceilings and Floors: Finding Areas
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5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Quantitative Analysis of Price Ceilings and Floors: Finding Areas / Problem 7
Problem 7
What happens to consumer surplus when a price floor is set above the equilibrium price?
A
Consumer surplus increases.
B
Consumer surplus remains unchanged.
C
Consumer surplus decreases.
D
Consumer surplus becomes negative.
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