Multiple Choice
Price Ceiling
The following questions refer to the accompanying diagram shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided. 
-Relative to before the price ceiling,how much surplus do producers lose because of the ceiling?
A) Area D + E + H
B) Area D + E
C) Area D + E + F
D) Area H.
Correct Answer:
Verified
Correct Answer:
Verified
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