Figure 7-6
-Refer to Figure 7-6.If the government imposes a price floor of $110 in this market,then consumer surplus will decrease by
A)$200.
B)$400.
C)$600.
D)$800.

Question

Figure 7-6 
-Refer to Figure 7-6.If the government imposes a price floor of $110 in this market,then consumer surplus will decrease by
A)$200. 
B)$400. 
C)$600. 
D)$800.

Quizplus · Accepted Answer

A price floor set above the equilibrium price reduces consumer surplus by the area of the triangle between the equilibrium price and the price floor. In this case, the decrease in consumer surplus is $600.

Figure 7-6 -Refer to Figure 7-6.If the Government Imposes a Price Floor