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If the Intended Aim of the Price Floor Set at $12

question 100

Multiple Choice

  If the intended aim of the price floor set at $12, as shown in the graph, was a net increase in the well-being of producers, then positive analysis would consider the policy to be: A) effective if area C is larger than area E. B) effective if areas E + B are larger than areas C + D + F. C) ineffective if area B is larger than area E. D) ineffective if areas E + B are larger than areas A + C + D + F. If the intended aim of the price floor set at $12, as shown in the graph, was a net increase in the well-being of producers, then positive analysis would consider the policy to be:


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