Question

If the government mandated a price increase from P1 to a higher price, then a. total surplus would remain unchanged. b. total surplus would increase, since producer surplus would increase. c. consumer surplus would increase. d. total surplus would decrease.

Answer 1

d. total surplus would decrease.

Step-by-step explanation:

Price higher than P1 would create inefficiency and deadweight loss in the economy. thus, total surplus would decrease.