The Figure Below Shows the Result of a Price Fixing

question 28

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. Answer Questions using this figure
-By forming this price-fixing cartel, producers gained $__________ of producer surplus, while consumers lost $__________ of consumer surplus.

• A) $15,000; $10,000
• B) $15,000; $20,000
• C) $20,000; $10,000
• D) $20,000; $5,000

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