The Diagram Below Shows Supply,demand,and Quantity Exchanged of Monday Matinee

question 74

Multiple Choice

The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
FIGURE 12- 4
-Refer to Figure 12- 4.Suppose a disequilibrium price of $7.50 per movie ticket is imposed on this market.The total economic surplus is now _ ,which is than the total economic surplus generated at the allocatively efficient level of output.

• A)$187.50; $62.50 less
• B)$125; $250 less
• C)$187.50; $187.50 less
• D)$125; $125 less
• E)$62.50; $125 less

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Definitions:

Psychoanalyst

A therapist who follows and practices psychoanalytic theories, primarily those of Freud, focusing on the unconscious mind.

Denial

A defense mechanism where a person refuses to accept reality or facts, blocking external events from awareness.

Defense Mechanism

Unconscious psychological strategies employed to protect oneself from anxiety or social sanctions and to provide a refuge from a situation with which one cannot currently cope.

Painful Realities

The acceptance or acknowledgment of difficult, distressing, or unpleasant truths or situations.