Figure 4-9 -"Moonshine" Is Illegal Home Brew Made by Adding Sugar to by Adding

question 208

Multiple Choice

Figure 4-9

-"Moonshine" is illegal home brew made by adding sugar to accelerate corn fermentation.Ten pounds of sugar are necessary to make a gallon of moonshine.In the mid-1970s, the price of sugar tripled and the price of moonshine skyrocketed from $6 to $15 a gallon.Which graph in Figure 4-9 best illustrates this?

• A)1
• B)2
• C)3

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay and the actual price they do pay.

Consumer Surplus

The economic benefit enjoyed by consumers when they pay less for a product than what they were prepared to pay.

Producer Surplus

The financial gap between the price sellers are willing to accept for goods or services and the price they eventually get.

Price Floor

A legal minimum on the price at which a good can be sold.