If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is

Relative to before the price ceiling, how much surplus do producers lose because of the ceiling?

The following questions refer to the accompanying diagram which shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided.

a. Area D + E + H
b. Area D + E
c. Area D + E + F
d. Area H.

Market failure means that

A. the law of supply and demand has stopped functioning. B. resources are not allocated efficiently. C. the stock market has crashed. D. prices are no longer reliable indicators of how much things cost.