Compared to Market Equilibrium, When There Is a Shortage

question 23

Multiple Choice

Compared to market equilibrium, when there is a shortage

• A) producer surplus is decreased and deadweight loss is increased.
• B) consumer surplus is decreased and deadweight loss is increased.
• C) consumer surplus is increased and deadweight loss is decreased.
• D) producer surplus is decreased and deadweight loss is decreased.

---

Definitions:

Estimator

A rule or formula that provides an estimate of a population parameter based on sample data.

True Value

True value refers to the actual value of a parameter or statistic in the population, which statistical estimates aim to approximate.

Confidence Interval

A range derived from sample statistics that likely contains the true population parameter at a specified level of confidence.

Standard Deviation

An assessment of the level of disparity or distribution spread in a dataset.