FIGURE 5- 5 -Refer to Figure 5- 5. Suppose This Market for Gardening

Multiple Choice

FIGURE 5- 5
-Refer to Figure 5- 5. Suppose this market for gardening services is in a free- market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

A) a loss of economic surplus of the areas 6 and 7.
B) a loss of economic surplus of the area 1.
C) a loss of economic surplus of the areas 2 and 6.
D) a loss of economic surplus of the areas 1, 2, 3, and 4.
E) a loss of economic surplus of the areas 2, 3, 4, 6, and 7.