Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the portion of consumer surplus transferred to producers as a result of the price floor?

A) $40,000 B) $100,000 C) $125,000 D) $140,000

B

Economics

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Fixed cost will decrease with increases in output

Indicate whether the statement is true or false

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If the price of oranges, a substitute for apples, decreases and the wages of apple workers increases, how will the equilibrium point change?

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