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-Refer to Exhibit 4-8

Question 19

Multiple Choice

-Refer to Exhibit 4-8.Suppose that wheat producers lobby the government for a price floor and receive one.This price floor is set at P<sub>F</sub>.What is the change in the total surplus at the price floor,compared to at the equilibrium price? A) There was a gain in total surplus equal to (area 1 + 2 + 3) B) There was a gain in total surplus equal to (area 1 + 2 + 3 + 4 + 5) C) There was a loss in total surplus equal to (area 4 + 5) D) There was a loss in total surplus equal to (area 4 + 5 + 6 )
-Refer to Exhibit 4-8.Suppose that wheat producers lobby the government for a price floor and receive one.This price floor is set at PF.What is the change in the total surplus at the price floor,compared to at the equilibrium price?


A) There was a gain in total surplus equal to (area 1 + 2 + 3)
B) There was a gain in total surplus equal to (area 1 + 2 + 3 + 4 + 5)
C) There was a loss in total surplus equal to (area 4 + 5)
D) There was a loss in total surplus equal to (area 4 + 5 + 6 )

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