When the Market Price Is Set Above the Equilibrium Price

question 113

Multiple Choice

When the market price is set above the equilibrium price:

• A) total surplus increases.
• B) consumer surplus increases for some consumers but falls for others.
• C) there are no exchanges that can make some better off without others becoming worse off.
• D) the market is not efficient.

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Definitions:

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Casual Partners

Relationships that are formed without formal commitments or expectations, often characterized by their informal and non-exclusive nature.

Opposite Sex

A term traditionally used to refer to the gender binary, specifically the other gender in contrast to one’s own.

Heterosexual

A person who is sexually attracted to people of the opposite sex.