The Diagram Below Shows Supply, Demand, and Quantity Exchanged of Monday

question 10

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. If a disequilibrium price of $7.50 per movie ticket were imposed on this market, this market would not be allocatively efficient because
1) the sum of consumer and producer surplus would not be maximized;
2) the marginal benefit to consumers of the last movie consumed would be greater than the marginal cost to the seller;
3) the marginal cost to the seller of the last movie consumed would be more than the marginal benefit to consumers.

• A) 2 only
• B) 1 only
• C) 3 only
• D) 1 and 2
• E) 2 and 3

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Definitions:

Deliveries

Deliveries refer to the process of transporting goods from one location to another, often involving a transfer from seller to buyer or from a storage facility to the end user.

Desirable Tone

The chosen attitude or emotional expression in communication that is considered appropriate and effective for the situation.

Confident

The state of feeling certain about the truth of something or having firm trust in one’s abilities or qualities.

Positive Emphasis

A communication approach focusing on positive aspects or outcomes rather than negative ones.