The government forces firms to provide more output at each price so that the new supply curve in the figure to the right intersects the demand curve at e2. Which of the following statements correctly describes the effects on consumer surplus (CS), producer surplus (PS), welfare, and deadweight loss (DWL)? p, $ per unit O A. The higher output decreases CS and increases PS, and society does not suffer any deadweight loss. Supply O B. The higher output increases CS and decreases PS, and society does not A suffer any deadweight loss. MG2 O C. The higher output decreases CS and increases PS, and society suffers a deadweight loss. O D. The higher output increases CS and decreases PS, and society suffers a B deadweight loss. = P C P2 D: E F H ...................... Demand G Q Q2 Q, Units per year