The Price-Quantity Combination Found Where the Supply and Demand Curves

question 77

Multiple Choice

The price-quantity combination found where the supply and demand curves intersect is a unique combination that is efficient because

• A) producers can sell as much as they want.
• B) total surplus is maximized.
• C) tax revenue is sufficient to pay for government services.
• D) consumers can buy as much as they want.
• E) new products are being introduced.

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