When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, the impact on total welfare is the
A) change in consumer surplus.
B) change in consumer surplus + the change in producer surplus + the cost to government.
C) change in consumer surplus + the change in producer surplus - the cost to government.
D) change in consumer surplus + the change in producer surplus.
C
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The value of net exports increases when the value of ________
A) exports of goods and services minus imports of goods and services decreases B) imports of goods and services increase C) imports of goods and services decrease D) exports of goods and services decrease
The main difference between perfect competition and monopolistic competition is:
a. The number of sellers in the market b. The ease of entry and exit in the industry c. The degree of information about market price d. The degree of product differentiation e. Whether it is the short run or the long run