(Figure: Determining Surplus and Loss) Consider the Graph

question 44

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is lowered from $8 to $5, producer surplus:

• A) increases by $190 and deadweight loss increases by $30.
• B) increases by $50 and deadweight loss increases by $70.
• C) decreases by $190 and deadweight loss increases by $30.
• D) decreases by $90 and deadweight loss increases by $70.

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Definitions:

Base

Molecule that is a proton acceptor; any substance that binds to hydrogen ions. Lower part or bottom of a structure; the base of the heart is the flat portion directed posteriorly and superiorly; veins and arteries project into and out of the base, respectively.

Inferior Aspect

The lower part or section of an anatomical structure or body part.

Circumflex Artery

An artery that supplies blood to the lateral and posterior parts of the heart.

Posterior Wall

The back part of a structure or organ, for example, the back side of the heart or abdomen, providing structural support and protection.