Solved

Refer to the Accompanying Figure

Question 28

Multiple Choice

Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market: Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market:   A) would increase because consumers would be able to purchase the same quantity of cheese at a lower price. B) would increase because consumers would be able to purchase more cheese at a lower price. C) could either increase or decrease. D) would decrease because of the reduction in equilibrium price.


A) would increase because consumers would be able to purchase the same quantity of cheese at a lower price.
B) would increase because consumers would be able to purchase more cheese at a lower price.
C) could either increase or decrease.
D) would decrease because of the reduction in equilibrium price.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions