FIGURE 5- 7 -Refer to Figure 5- 7. the Market for Good X

Multiple Choice

FIGURE 5- 7
-Refer to Figure 5- 7. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a at P2. One result would be .

A) price floor; a deadweight loss represented by area 8.
B) price ceiling; a deadweight loss represented by areas 5 and 6.
C) price floor; an increase in economic surplus represented by area 1.
D) price ceiling; an increase in economic surplus represented by areas 2 and 5.
E) price floor; a deadweight loss represented by areas 5 and 6.