Assume the Market Depicted in the Graph Is in Equilibrium

question 3

Multiple Choice

Assume the market depicted in the graph is in equilibrium. If the market price is set to $6, which of the following statements is true?

• A) For those still interacting in the market, some surplus will be transferred from buyer to seller.
• B) For those still interacting in the market, some surplus will be transferred from seller to buyer.
• C) Producers will gain the surplus of those buyers who drop out of the market.
• D) Consumers will gain the surplus of those sellers who drop out of the market.

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Definitions:

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A person who carries out a formal inquiry or investigation to discover and examine the facts of an issue.

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