Consider a Market Characterized by the Following Inverse Demand and Supply

Multiple Choice

Consider a market characterized by the following inverse demand and supply functions: P_X = 10 − 2Q_X and P_X = 2 + 2Q_X. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.

A) $1
B) $2
C) $3
D) $5