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12. Federally regulated production quotas are used to restrict Canadian milk production to Q0 , which is below the competitive level, QC . This restriction

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12. Federally regulated production quotas are used to restrict Canadian milk production to Q0 , which is below the competitive level, QC . This restriction in supply results in a market price PU that exceeds the competitive price P*. When compared to the competitive market outcome this supply restriction: 5 Q" 0* 0mm:- A. Reduces deadweight loss. B. Causes consumer surplus to fall by area b - c. C. Raises producer surplus for farmers by amount b- e. D. All of the above

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