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The Following Figure Shows the Effect of a Price Ceiling

Question 7

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The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P2 and quantity B.
Figure 10-1 The following figure shows the effect of a price ceiling in the market for yams.The market was initially in equilibrium at price P<sub>2 </sub>and quantity B. Figure 10-1 -Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P<sub>1</sub> is area _____. A) -EFI B) EFJ - P<sub>2</sub>JIP<sub>1</sub> C) -P<sub>2</sub>FIP<sub>1</sub> D) P<sub>1</sub>IM
-Refer to Figure 10-1.The change in aggregate producer surplus due to a price ceiling set at P1 is area _____.


A) -EFI
B) EFJ - P2JIP1
C) -P2FIP1
D) P1IM

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