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.

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Definitions:

Regio-

A prefix in chemistry referring to the specific region or position in a molecule that is involved in a chemical reaction.

(Z)-3-hexene

A geometric isomer of hexene where the two highest priority substituents on either end of the double bond are on the same side.

Stereochemical

Pertaining to the spatial arrangement of atoms within molecules and its influence on the properties and reactions of those molecules.

Regio-

A prefix referring to the region or position in a molecule where a chemical reaction takes place, often indicating the orientation or specificity of a reaction.