If Price Is Lowered by Law from the Market Equilibrium

question 132

Multiple Choice

If price is lowered by law from the market equilibrium value of $5 to a lower value of $4:

• A) both producer surplus and consumer surplus will increase.
• B) consumer surplus will decrease and there will be some total surplus lost.
• C) producer surplus will decrease and there will be some total surplus lost.
• D) there will be lost surplus, as both producer surplus and consumer surplus decrease.

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Definitions:

Diabetes Management

The process of monitoring and regulating blood glucose levels through lifestyle choices, medication, and potentially insulin therapy to manage diabetes.

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

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A class of diseases that involve the heart or blood vessels, such as coronary artery disease, heart attacks, and stroke.

Type 2 Diabetes

A chronic condition characterized by high blood sugar levels due to the body’s inability to use insulin properly, often associated with obesity and lifestyle factors.