question true or false? when a price floor is implemented, there is a decrease in social surplus but…

question true or false? when a price floor is implemented, there is a decrease in social surplus but consumer surplus and producer surplus remain the same. select the correct answer below: true false

question true or false? when a price floor is implemented, there is a decrease in social surplus but consumer surplus and producer surplus remain the same. select the correct answer below: true false

Answer

Brief Explanations:

When a price - floor is implemented above the equilibrium price, it creates a surplus. This leads to a decrease in social surplus. Also, consumer surplus decreases as consumers pay a higher price and buy less, while producer surplus may change depending on the elasticity of demand and supply. So, consumer surplus and producer surplus do not remain the same.

Answer:

False