26. Assume now that the government enacts a price ceiling of $20. What is the new Consumer Surplus? (A) $3,200 (B) $3,400 (C) $312.50 (D) $6,400 27. When the price ceiling is $20, consumer surplus declines, compared to the market equilibrium. Why? (A) The lower prices do not overcome reduced quantity (B The lower quantity does compensate for higher prices ) (C) Both A and B ) (D The lower prices create a marginal elasticity of demand 28. What is the Deadweight Loss from a price ceiling of $20? 30. Which of the following policies is an example of a price ceiling? (A Rent controls ) (B) Minimum wages (C) Taxes (D) Subsidies