When a Market Is in Equilibrium and the Marginal Consumer

Multiple Choice

When a market is in equilibrium and the marginal consumer values a commodity at less than the social cost of producing it, which of the following are true?
(i) at market equilibrium the demand curve lies below the social cost curve
(ii) reducing production to a level below the equilibrium level could possibly raise total economic wellbeing
(iii) the equilibrium price is higher than necessary to insure maximum economic wellbeing

A) (i) and (ii) only
B) (i) and (iii) only
C) (ii) and (iii) only
D) (i) , (ii) and (iii)