(Figure: Determining Surplus and Loss) Consider the Graph

question 74

Multiple Choice

(Figure: Determining Surplus and Loss) Consider the graph. If the price is raised from $8 to $12, consumer surplus:

• A) increases by $120 and deadweight loss increases by $60.
• B) increases by $20 and deadweight loss increases by $70.
• C) decreases by $120 and deadweight loss increases by $70.
• D) decreases by $20 and deadweight loss increases by $70.

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Definitions:

Inclusion

The practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized.

Monopsonist

A market condition where there is only one buyer for a particular product or service, giving the buyer significant control over prices.

Labor Market

The supply and demand for workers, in which employers seek to hire labor and workers find employment. The labor market dynamics influence wages and employment levels.

Monopsonist

A market condition where there is only one buyer for many suppliers, giving the buyer substantial control over prices and terms.