if-a-government-imposes-a-price-floor-above-equilibrium-what-is-the-likely-effec

Question

If a government imposes a price floor above equilibrium, what is the likely effect on producer surplus?

Accepted Answer

Producer surplus may increase for some producers but total surplus decreases due to inefficiency.

Answer

Producer surplus becomes negative.

Answer

Producer surplus is unaffected.

Answer

Producer surplus always increases for all producers.