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Use the Following to Answer Questions 20-21

Question 16

Multiple Choice

Use the following to answer questions 20-21:
Figure 3.7 Use the following to answer questions 20-21: Figure 3.7   -(Figure 3.7)  Suppose the government mandates a price ceiling of $8 per pound. Consumer surplus: A)  increases from $900 to $1,600. B)  increases from $400 to $1,200. C)  increases from $1,800 to $2,100. D)  decreases from $600 to $450.
-(Figure 3.7) Suppose the government mandates a price ceiling of $8 per pound. Consumer surplus:


A) increases from $900 to $1,600.
B) increases from $400 to $1,200.
C) increases from $1,800 to $2,100.
D) decreases from $600 to $450.

Correct Answer:

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