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Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

Question 338

Multiple Choice

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
-As shown in Exhibit 3A-2, if the market price falls from P₁ to P₂, then:

A) consumer surplus increases.
B) producer surplus increases.
C) deadweight loss is eliminated.
D) all of these are true.

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