Assume the Market Depicted in the Graph Is in Equilibrium

question 4

Multiple Choice

Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S₁) . Consumer surplus is:

• A) greater than it is when market is in equilibrium at D and S₂.
• B) less than it is when market is in equilibrium at D and S₂.
• C) the same as it is when market is in equilibrium at D and S₂.
• D) zero.

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Definitions:

Misinformation

False or inaccurate information that is spread, intentionally or unintentionally, which can influence memory and perception.

Distress

Acute stress or discomfort resulting from situations perceived as threatening or overwhelming.

Misinformation Effect

Information received from others about an event that can alter a memory to conform to the information received from other people.

Plausibility

The quality of appearing to be reasonable or probable, often used in the context of arguments or theories.