Figure 9.2.1 -Refer to Figure 9.2.1 above. When the minimum imposed price is P₂, areas B + C are: A) the deadweight loss to consumers as a result of the price control. B) the deadweight loss to producers as a result of the price control. C) the deadweight loss to both producers and consumers as a result of the price control. D) gains transferred from consumers to producers.

Question

Quizplus · Accepted Answer

Areas B + C represent the deadweight loss to both producers and consumers as a result of the price control. This represents the loss of potential surplus that would have been created if the market was allowed to reach equilibrium without the price control.

Figure 9.2.1 -Refer to Figure 9.2.1 Above. When the Minimum Imposed Price