(Figure: Market for Peanuts II) If the Government Mandates a Price

Multiple Choice

(Figure: Market for Peanuts II) If the government mandates a price floor of $750, the area of consumer surplus:

A) increases from A to A + B + C.
B) decreases from A + B + C to A.
C) increases from A to B + C.
D) decreases from B + C to A.