Question

Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the producers

Answer 1

The answer is Area 1 for the size of producer

Step-by-step explanation:

Referred to the image attached we infer that:

Consumers’ surplus has gone down by (area 2 + 4)

Size of producers (area 1)