-Refer to the Diagram Above

question 143

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 value of the loss of total economic surplus equals

• A) TRPN.
• B) ½(P
• K)(K
• W).
• C) ½(P
• K)(K
• W)+ ½(R
• K)(K
• W).
• D) ½(R
• K)(K
• W).
• E) VTNM.

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