With an Acreage Limitation Program (Compared with the Initial Situation

Multiple Choice

With an acreage limitation program (compared with the initial situation of no program) , which of the following statements is true?

A) The impact on the government's budget is zero, consumer surplus increases and producer surplus decreases.
B) The impact on the government's budget is positive, consumer surplus decreases and producer surplus increases.
C) The impact on the government's budget is negative, consumer surplus increases and producer surplus decreases.
D) The impact on the government's budget is negative, consumer surplus decreases, producer surplus increases, and there is a deadweight loss.