Yikes! That IS a big drop. What about consumer surplus?

Candace

Good question! I have edited Bamboo Shoots's market here on the graph...let's take a look.

Candace

I have labeled the new producer surplus $($PS$)$ on the graph.

Tina

Wow, so what do consumers have in terms of consumer surplus after the price ceiling? In other words, what area represents consumer surplus now?

Area B only

Area B $+$ Area C

Area A only

Area $A+B$