Refer to the Graph Shown

question 41

Multiple Choice

Refer to the graph shown. An effective price floor at $8 causes producer surplus to:

• A)increase from 10 to 80.
• B)fall from 62.5 to 10.
• C)increase from 62.5 to 70.
• D)fall from 70 to 62.5.

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Definitions:

Partnership Business

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.