the graph below represents the market for corn. if a price floor is set at $8, which parts of the graph…

the graph below represents the market for corn. if a price floor is set at $8, which parts of the graph represent social surplus that is no longer received by the market participants? select the two correct answers below.

the graph below represents the market for corn. if a price floor is set at $8, which parts of the graph represent social surplus that is no longer received by the market participants? select the two correct answers below.

Answer

Explanation:

Step1: Define dead - weight loss

Dead - weight loss is the social surplus that is no longer received by market participants due to market inefficiencies like price floors.

Step2: Identify dead - weight loss areas on graph

In a market with a price floor, the dead - weight loss is represented by the areas C and E. These areas represent the loss of potential gains from trade that no longer occur because of the price floor.

Answer:

C, E