According to the Graph Shown, If the Market Goes from Equilibrium

question 57

Multiple Choice

According to the graph shown, if the market goes from equilibrium to having its price set at $4:

• A) deadweight loss will be $90.
• B) consumer surplus will be $160.
• C) deadweight loss will be $60.
• D) consumer surplus will rise by $30.

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Definitions:

Recourse

The right of an individual or entity to seek compensation or legal redress in the event of a breach of contract or other legal injury.

Negotiable

Describes items, like certain documents, that can be transferred from one party to another with the endorsement or delivery, retaining its value.

Ninety Days

A time period equivalent to approximately three months or 90 consecutive days.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.