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 consumers' surplus as a result of the imposition of the price floor?

A) consumers' surplus has gone down by (area 2 + 4)
B) consumers' surplus has risen by (area 2 + 4)
C) consumers' surplus has gone down by (area 3 - area 5)
D) consumers' surplus has risen by (area 2 + 3)