Multiple Choice
Suppose that the price of a good is $22 and equilibrium price is $18. Compared to market equilibrium
A) consumer surplus is decreased and deadweight loss is increased.
B) consumer surplus is increased and deadweight loss is decreased.
C) producer surplus is decreased and deadweight loss is increased.
D) producer surplus is decreased and deadweight loss is decreased.
Correct Answer:
Verified
Correct Answer:
Verified
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