(Figure: Quantity Controls)Use Figure: Quantity Controls

question 153

Multiple Choice

(Figure: Quantity Controls) Use Figure: Quantity Controls.If the government decides to restrict the quantity sold to 100,which statement is FALSE?

• A)Total surplus will fall by areas C and E.
• B)The market is not at the free-market equilibrium.
• C)Consumer surplus is maximized.
• D)Some mutually beneficial transactions have been eliminated.

---

Definitions:

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm that constitutes the basis for a claim by the injured party.

Business

The systematic endeavors and operations by people to create and market products and services with the aim of making a profit.

Exculpatory Clauses

Provisions in a contract that relieve one party of liability for harm or loss caused during the execution of the contract, often shifting the risk to the other party.

Principal

The original amount of money loaned or invested, excluding any interest or profits.