Refer to Figure 9.2.1 above. When the minimum imposed price is P₂, area A is:

A) a transfer of consumer surplus to producer surplus.
B) a deadweight loss associated with the higher than equilibrium price.
C) the revenue that producers lose as a result of the imposed price.
D) all of the above

Minimum Imposed Price

A price floor set by the government or other regulatory body, above the equilibrium price, to prevent prices from falling too low.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer satisfaction.

Producer Surplus

The difference between what producers are willing to accept for a good and the actual amount they receive.