FIGURE 5- 6 -Refer to Figure 5- 6. the Market for Good X

Multiple Choice

FIGURE 5- 6
-Refer to Figure 5- 6. The market for good X is in equilibrium at P0 and Q0. Now suppose the government imposes a at P1. One result would be .

A) price floor; a deadweight loss represented by areas 2, 6 and 7.
B) price ceiling; a deadweight loss represented by areas 5, 6, 7 and 8.
C) price ceiling; an increase in economic surplus represented by areas 5 and 6.
D) price floor; a deadweight loss represented by areas 5, 6, 7 and 8.
E) price ceiling; a deadweight loss represented by areas 5 and 6.