Refer to the Graph Shown

question 127

Multiple Choice

Refer to the graph shown. An effective price floor at P_f causes consumer surplus to:

• A) change from areas C + D + F to areas B + C + D.
• B) change from areas A + B + E to areas A + B + C.
• C) fall from areas C + D + F to area D.
• D) fall from areas A + B + E to area A.

---

Definitions:

Contractual Provision

Specific clauses or terms included within a contract that dictate the obligations, rights, or conditions for the involved parties.

Third-Party Beneficiary

An individual or entity that stands to benefit from a contract, despite not being a direct party to the agreement.

Contract Formed

The point at which an agreement becomes legally binding, after all parties meet the necessary legal requirements.

Delegated

Pertains to the transfer of authority or responsibility from one entity or person to another, often seen in organizational or governmental contexts.