If the Intended Aim of the Price Floor Set in the Graph

question 133

Multiple Choice

If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:

• A) the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
• B) the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
• C) the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices.
• D) there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.

---

Definitions:

Structure

Refers to the arrangement of atoms or molecules in a substance, determining its chemical composition and properties.

Aromatic Hydrocarbons

Compounds that contain one or more benzene rings, noted for their stability and aromaticity.

Molecule

The smallest particle in a chemical element or compound that has the chemical properties of that element or compound, composed of atoms bonded together.

Anisole

An organic compound, methoxybenzene, characterized by a methoxy group attached to a benzene ring, used as a precursor in perfumery and pharmaceuticals.