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$38 $36 $34 $32 $30 $28 S = MC $26 $24 $22 $20 $18 $16 $14 $12 D= MB $10 $8 $6 $4 $2 SO 0 6 7 8 9 10 11 12 13 14 15 16 Quantity (Q) The graph above shows the supply and demand functions for a product produced in a small country in a perfectly competitive industry. The demand function is the sum of the demand functions of all the consumers in this country, the same as their marginal benefit functions. The supply function is the sum of the marginal-cost functions of all the firms in the industry. Forget about everything that happened in the previous questions. Start from the beginning. The government imposes a price ceiling of $8 per unit on this product. As a result of this policy, consumer surplus changes to X dollars. What is X? O X = $94 O X = $96 O X = $98 O X = $100 None of the above.$38 $36 $34 $32 $30 $28 S = MC $26 $24 $22 $20 $18 $16 $14 $12 $10 D = MB $8 $6 $4 $2 SO 0 5 6 8 9 10 11 12 13 14 15 16 Quantity (Q) The graph above shows the supply and demand functions for a product produced in a small country in a perfectly competitive industry. The demand function is the sum of the demand functions of all the consumers in this country, the same as their marginal benefit functions. The supply function is the sum of the marginal-cost functions of all the firms in the industry. Forget about the tax and the subsidy. Start from the beginning. The government imposes a price floor of $26 per unit on this product. As a result of this policy, X dollars that were enjoyed by consumers as a part of their consumer surplus go into the pockets of producers as a part of their producer surplus. What is X? O X = $32 O X = $36 C X = $38 C X = $40 None of the above