Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to:
A) increase from 30 to 120.
B) increase from 80 to 110.
C) fall from 120 to 30.
D) fall from 80 to 30.

Question

Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to: 
A) increase from 30 to 120. 
B) increase from 80 to 110. 
C) fall from 120 to 30. 
D) fall from 80 to 30.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to: 
A) increase from 30 to 120. 
B) increase from 80 to 110. 
C) fall from 120 to 30. 
D) fall from 80 to 30.

Refer to the Graph Shown