If the Intended Aim of the Price Floor Set at $23

question 22

Multiple Choice

If the intended aim of the price floor set at $23, as shown in the graph, was a net increase in the well-being of producers, then positive analysis would have us consider whether:

• A) the surplus transferred from producers to consumers is greater than the consumer surplus lost due to fewer transactions taking place.
• B) the surplus transferred from consumers to producers is greater than the consumer surplus lost due to fewer transactions taking place.
• C) the producer surplus lost due to fewer transactions taking place is greater than the producer surplus gained from a higher price.
• D) the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place.

---

Definitions:

Social Security Number

A unique numerical identifier assigned to U.S. citizens and eligible residents for tracking income and determining benefits.

Appliance Store

A retail establishment that specializes in selling electrical or mechanical machines used in households, such as refrigerators, washing machines, and ovens.

Advertised Product

An item or service marketed to potential customers through various media channels.

Salesperson

An individual who sells goods or services to customers, often working on behalf of a company or as an independent representative, aiming to meet sales targets and fulfill customer needs.