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Next, I am going to ask you to identify Consumer Surplus, Producer Surplus, and Dead Weight Loss on the soybean model with and without the
Next, I am going to ask you to identify Consumer Surplus, Producer Surplus, and Dead Weight Loss on the soybean model with and without the price oor in place. Though I think the best way to answer it is to draw on a blank demand and supply model, for the purpose of this quiz I am asking you to identify the elements of economic surplus using the guide depicted here Soybean Market $20 $16 69 3: M and selecting the appropriate letters. Pnce G'er BusheD 69 on $4 0 10 20 30 40 50 Quantity (Thousands of Bushels) Question 20 Select the area(s) that represent DEADWEIGHT LOSS before the price floor is imposed? (select all that apply) O B O G OD OF OH O There is no deadweight loss without the price floor. OC O AQuestion 19 Select the area(s) that represent PRODUCER SURPLUS before the price floor is imposed? (select all that apply) O A OC OD OF OB O G O There is no producer surplus without the price floor. OHQuestion 18 Select the area(s) that represent CONSUMER SURPLUS before the price floor is imposed? (select all that apply) O There is no consumer surplus without the price floor. O A O B O G DE OC OH OF OD
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