-Refer to the Diagram Above

question 36

Multiple Choice

-Refer to the diagram above.Assume that a price ceiling is imposed at point G,i.e. ,the price is now represented by the distance 0G.The reason that consumer surplus changes when a price ceiling is imposed is that

• A) more consumers have access to the good.
• B) consumers from 0 to Q2 are able to purchase the good for 0G instead of 0B.
• C) firms are forced to provide the good at a fair price to all consumers from 0 to Q3.
• D) the value of the good to consumers rises because fewer units are available.
• E) consumers can now spend more on other goods and services.

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