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The Following Figure Shows the Effect of a Price Ceiling

Question 63

Multiple Choice

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. 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. Refer to Figure 10-1.The total surplus at the initial point of equilibrium,F,is given by _____. A) LFP<sub>2</sub> B) LFGP<sub>1</sub> C) LFM D) LFIP<sub>1</sub> Refer to Figure 10-1.The total surplus at the initial point of equilibrium,F,is given by _____.


A) LFP2
B) LFGP1
C) LFM
D) LFIP1

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