A U.S. international corporation will produce in other countries if costs are lower there

Price floors and price ceilings

A) always reduce total surplus. B) reduce consumer surplus and increase producer surplus. C) reduce producer surplus and increase consumer surplus. D) Not enough information to determine.

Suppose the market in Figure 9.4 is currently in equilibrium. If the government establishes a price floor of $50, how many widgets will be sold?

A) 20 B) 30 C) 40 D) 50 E) 60