Exhibit 16.3 -Refer to Exhibit 16.3,which Shows the Market for Wool.Suppose the Market

Multiple Choice

Exhibit 16.3

-Refer to Exhibit 16.3,which shows the market for wool.Suppose the government introduces a variety of policies that set floor prices for wool at $6.As a result of the price support,the typical consumer-taxpayer in effect pays _____ for each pound of wool actually purchased.

A) $6
B) $5
C) $12
D) $11
E) $1