Consider the market for sugar illustrated in the figure to the right. Suppose the market is perfectly competitive and initially in equilibrium at a price of p2 and a quantity of Q2. Now suppose the government applies a price floor of p3. Compared with the market-clearing equilibrium, consumer surplus would A P3 O A. decrease by area B. O B. decrease by areas B and E. OC. decrease by areas B and F. O D. decrease by area E. O E. increase by area C. G E P2 P1 D D Q2 Q3 Quantity of sugar ..... B. Price of sugar .....

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