Suppose the Government Introduces a Ceiling on the Fees That

question 16

Multiple Choice

Suppose the government introduces a ceiling on the fees that lawyers are permitted to charge.If the fee ceiling is set ________ the equilibrium wage rate,the amount of work done by lawyers ________,the consumer surplus of people who hire lawyers ________,and the producer surplus of law firms ________.

• A)below;increases;increases;increases
• B)above;decreases;decreases;decreases
• C)below;decreases;decreases;decreases
• D)above;increases;increases;increases
• E)below;decreases;increases;decreases