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(Figure: Determining Surplus and Loss) Consider the Graph

Question 274

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, producer surplus (Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, producer surplus A) increases by $190 and deadweight loss increases by $30. B) increases by $50 and deadweight loss increases by $70. C) decreases by $190 and deadweight loss increases by $30. D) decreases by $90 and deadweight loss increases by $70.


A) increases by $190 and deadweight loss increases by $30.
B) increases by $50 and deadweight loss increases by $70.
C) decreases by $190 and deadweight loss increases by $30.
D) decreases by $90 and deadweight loss increases by $70.

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