Refer to the Figure Below

question 77

Multiple Choice

Refer to the figure below. Suppose the dairy lobby convinces the government to impose price controls in this market. If the government requires cheese to be sold for a price of $8 per pound, then, relative to before the price controls, total consumer surplus in the market would:

• A)increase
• B)decrease
• C)not change
• D)increase and then decrease

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