All else equal, if a price floor that is above the equilibrium price is imposed on a market and the government buys the surplus, what will happen to consumer and producer surplus?
A.Consumer surplus will fall and producer surplus will rise.
B.Consumer surplus will fall and producer surplus will fall.
C.Consumer surplus will rise and producer surplus will fall.
D.Consumer surplus will rise and producer surplus will rise.

Question

Quizplus · Accepted Answer

The Answer of All else equal, if a price floor that is above the equilibrium price is imposed on a market and the government buys the surplus, what will happen to consumer and producer surplus?
A.Consumer surplus will fall and producer surplus will rise.
B.Consumer surplus will fall and producer surplus will fall.
C.Consumer surplus will rise and producer surplus will fall.
D.Consumer surplus will rise and producer surplus will rise.

All Else Equal, If a Price Floor That Is Above