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(Figure: Determining Surplus and Loss) Consider the Graph

Question 31

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, a surplus of (Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, a surplus of A) $60 is transferred from producers to consumers. B) $60 is transferred from consumers to producers. C) $140 is transferred from producers to consumers. D) $140 is transferred from consumers to producers.


A) $60 is transferred from producers to consumers.
B) $60 is transferred from consumers to producers.
C) $140 is transferred from producers to consumers.
D) $140 is transferred from consumers to producers.

Correct Answer:

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