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Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

Question 28

Multiple Choice

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

As shown in Exhibit 3A-2, if the market price falls from P₂ to P₃, then:

A) total surplus increases.
B) deadweight loss decreases.
C) overproduction increases.
D) underproduction decreases.

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