Question: Answer selected is incorrect. If a price floor is implemented above the equilibrium price, which one is true about the welfare implications? Consumer surplus decreases

Answer selected is incorrect. If a price floor is implemented above

Answer selected is incorrect.

If a price floor is implemented above the equilibrium price, which one is true about the welfare implications? Consumer surplus decreases both due to price and quantity effect The total surplus does not change . There comes a positive deadweight loss due to the price effect Producer surplus always increase

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