1.4 Government intervention

Medium

The diagram below shows the supply and demand for agricultural grain under a government price support scheme.

A supply and demand diagram for grain showing a minimum price.

Which one of the following areas represents the change in consumer surplus when a minimum price $P_2\,$ is imposed?

$P_2 F E P_e$

$A F P_2$

$P_2 H E P_e$

$F E H$

1.4 Government intervention Questions