Use the Following to Answer Questions 22-23

question 12

Multiple Choice

Use the following to answer questions 22-23:
Figure 3.8
-(Figure 3.8) Suppose the government mandates a price ceiling of $3 per pound. Producer surplus decreases from:

• A) $1,500 to $800.
• B) $2,200 to $1,400.
• C) $4,500 to $2,000.
• D) $3,000 to $2,700.

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Innovation

The creation and development of a new product or service.

Participation Error

The bias or error that can occur in research or decision-making processes when not all relevant parties are included or accurately represented.

Framing Error

The tendency to highlight certain aspects of a situation depending on whether they are positive or negative to solve a problem while ignoring other aspects.