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Refer to the Accompanying Figure

Question 64

Multiple Choice

Refer to the accompanying figure. Suppose a law is passed requiring restaurants to charge no more than $25 per meal. This law would: Refer to the accompanying figure. Suppose a law is passed requiring restaurants to charge no more than $25 per meal. This law would: A) decrease producer surplus. B) increase producer surplus. C) have no effect on producer surplus. D) have an ambiguous effect on producer surplus.


A) decrease producer surplus.
B) increase producer surplus.
C) have no effect on producer surplus.
D) have an ambiguous effect on producer surplus.

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