Figure 9.4.1 -Refer to Figure 9.4.1 Above. Suppose the Government Raises the Raises

question 46

Multiple Choice

Figure 9.4.1
-Refer to Figure 9.4.1 above. Suppose the government raises the price of cheese above the market equilibrium level (P₀) by imposing a high minimum price and purchasing all of the excess supply from the market, and these quantities are destroyed. Based on the areas in the figure below, what is the change in consumer surplus after this policy is adopted?

• A) Consumers lose area B
• B) Consumers lose area A+B
• C) Consumers lose area A but gain area B
• D) Consumers gain area A+B

---

Definitions:

Benefits and Risks

This encompasses the positive outcomes (benefits) and potential negative consequences (risks) associated with a particular action, decision, or strategy.

Resource Acquisition

The process of obtaining resources necessary for the operation of an organization or project.

No Substitute

The assertion that certain elements or aspects cannot be replaced by alternatives without loss of value or function.

Member Skills

The abilities and expertise possessed by members of a group or team that contribute to its overall success.