Multiple Choice
Compared to market equilibrium, when there is a shortage
A) producer surplus is decreased and deadweight loss is increased.
B) consumer surplus is decreased and deadweight loss is increased.
C) consumer surplus is increased and deadweight loss is decreased.
D) producer surplus is decreased and deadweight loss is decreased.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Suppose that a customer's willingness-to-pay for a
Q19: (Figure: Understanding Surplus and Efficiency) In the
Q20: A good example of a government-imposed price
Q21: The difference between the market price and
Q22: If a price ceiling is set above
Q24: (Figure: Determining Surplus) In the graph, the
Q25: If a price ceiling is set below
Q26: When LeBron James rejoined the Cleveland Cavaliers
Q27: When demand for a product falls, ceteris
Q28: If a price floor is set below