Question

Suppose that the price Is increased by the government from a market equilibrium value of $10 to a higher value of $12 a. producer surplus will decrease and there will be some lost surplus b. both producer surplus and consumer surplus will increase.

c. consumer surplus will decrease and there will be some lost surplus
d. there will be lost surplus, as both producer surplus and consumer surplus decrease.

Answer 1

c.consumer surplus will decrease and there will be some lost surplus

Step-by-step explanation: