Suppose That the Price of a Good Is $6 and Equilibrium

question 169

Multiple Choice

Suppose that the price of a good is $6 and equilibrium price is $3. Compared to market equilibrium:

• A) consumer surplus is decreased and deadweight loss is increased.
• B) consumer surplus is increased and deadweight loss is decreased.
• C) producer surplus is decreased and deadweight loss is increased.
• D) producer surplus is decreased and deadweight loss is decreased.

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Definitions:

Aesthetically Pleasing

Something described as aesthetically pleasing is considered to be visually attractive or beautiful in appearance.

Rationalize

Rationalizing is the process of eliminating the square root or imaginary number from the denominator of a fraction.

Simplify

To simplify in mathematics means to alter an expression to a more concise, equivalent form, making it easier to work with or understand.

Expression

A combination of symbols, numbers, and operators (+, -, *, /) that together define a mathematical quantity or relationship.