Exhibit 4-8 Refer to Exhibit 4-8.  Suppose That Wheat Producers  Lobby the Government for the Government

Multiple Choice

Exhibit 4-8
Refer to Exhibit 4-8.  Suppose that wheat producers  lobby the government for a price floor and receive one.  This price floor is set at P_F.  What has happened to the producers' surplus as a result of the imposition of the price floor?

A) Producers' surplus has risen by (area 2 + 3)
B) Producers' surplus has fallen by (area 4 + 5)
C) Producers' surplus has changed by (area 3 - area 5)
D) Producers' surplus has changed by (area 2 - area 5)