If a Price Ceiling Is Introduced in the Market for Milk

Multiple Choice

If a price ceiling is introduced in the market for milk below the market equilibrium price,then the producer surplus made by dairy farmers ________.

A) will increase
B) will decrease
C) will not change
D) might increase or decrease depending on whether the demand for milk increases or decreases
E) might increase or decrease depending on whether the supply of milk decreases or increases