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Refer to the Figure Below

Question 77

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Refer to the figure below. Suppose the dairy lobby convinces the government to impose price controls in this market. If the government requires cheese to be sold for a price of $8 per pound, then, relative to before the price controls, total consumer surplus in the market would: Refer to the figure below. Suppose the dairy lobby convinces the government to impose price controls in this market. If the government requires cheese to be sold for a price of $8 per pound, then, relative to before the price controls, total consumer surplus in the market would:   A) increase B) decrease C) not change D) increase and then decrease


A) increase
B) decrease
C) not change
D) increase and then decrease

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