Answer to Question #129542 in Microeconomics for mathakha

Question

After the imposition of a minimum price of Pm in the market:
(1) The quantity actually traded (i.e. quantity demanded and supplied) is Q1.
(2) Rectangle A transfers from producer surplus to consumer surplus.
(3) The quantity traded will be Qm and rectangle A transfers from consumer
surplus to producer surplus.
(4) Total consumer surplus can be represented by the area PmREO in the graph

Answer 1

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