Figure 9.4.1 -Refer to Figure 9.4.1 Above. Suppose the Government Raises the Raises

Multiple Choice

Figure 9.4.1
-Refer to Figure 9.4.1 above. Suppose the government raises the price of cheese above the market equilibrium level (P₀) by imposing a high minimum price and purchasing all of the excess supply from the market, and these quantities are destroyed. Based on the areas in the figure below, what is the change in consumer surplus after this policy is adopted?

A) Consumers lose area B
B) Consumers lose area A+B
C) Consumers lose area A but gain area B
D) Consumers gain area A+B