Figure 9.3.2 -Refer to Figure 9.3.2 Above. If the Government Establishes a Establishes

Multiple Choice

Figure 9.3.2
-Refer to Figure 9.3.2 above. If the government establishes a price floor of $2.50 and farmers grow only the amount of berries that will be sold, producer surplus will:

A) fall by $50.
B) fall by $100.
C) remain the same.
D) rise by $50.
E) rise by $100.