Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

question 121

Multiple Choice

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
-As shown in Exhibit 3A-2, if the market price falls from P₂ to P₃, then:

• A) consumer surplus increases.
• B) producer surplus increases.
• C) deadweight loss increases.
• D) all of the above are true.
• E) none of the above are true.

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