Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss

Multiple Choice

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
-As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:

A) consumer surplus increases.
B) producer surplus increases.
C) deadweight loss is eliminated.
D) all of the above are true.
E) none of the above are true.