-Refer to the Diagram Above

question 211

Multiple Choice

-Refer to the diagram above.Assume that a price floor is imposed at point V,i.e. ,the price is now represented by the distance 0V,and that the government vows to purchase any excess supply.The distance ______ measures the extent of the resulting __________.

• A) QbQc;surplus
• B) VR;surplus
• C) TR;shortage
• D) MN;shortage
• E) ZW;loss of total economic surplus

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