In a Free Market in Which an Equilibrium Price and Quantity

question 44

Multiple Choice

In a free market in which an equilibrium price and quantity prevails:

• A) consumer surplus is less than producer surplus.
• B) consumer surplus is greater than producer surplus.
• C) consumer surplus is the same as producer surplus.
• D) consumer surplus and producer surplus are maximized.

---

Definitions:

Market-oriented Era

A period in business thought where the focus is on understanding and satisfying the needs and preferences of customers through research and market analysis.

Retailing-oriented Era

A period in business history marked by the dominant focus on retail activities, where selling direct to customers through various retail outlets was prioritized.

Production-oriented Era

A period in business where the focus was on production efficiency and product improvement, often at the expense of consumer needs and preferences.

Sales-oriented Era

A period in business history when companies prioritized selling their products and convincing consumers to buy, often regardless of actual customer need.