-Refer to the Diagram Above

question 101

Multiple Choice

-Refer to the diagram above.If producers all agree to raise the price of milk from $1.00 to $1.25,then

• A) the loss of total economic surplus is $2.50.
• B) the loss of total economic surplus is $2.00.
• C) the loss of total economic surplus is $4.50.
• D) consumer surplus falls by $4.50.
• E) the net gain in producer surplus more than offsets the deadweight loss.

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