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If the Demand Curve Reflects Consumers' Full Willingness to Pay

Question 31

Multiple Choice

If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then which of the following is true?


A) The benefit surpluses shared between consumers and producers will be maximized.
B) The benefit surpluses received by consumers and producers will be equal.
C) There will be no consumer or producer surplus.
D) Consumer surplus will be maximized, and producer surplus will be minimized.

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