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:

Continuous Flow

A process in which materials, information, or goods move in a constant, uninterrupted stream through various stages of production or operations.

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A category of mental health disorders that primarily affect cognitive abilities including learning, memory, and perception.

Brain Injury

Physical damage to the brain, which can result in temporary or permanent impairment of cognitive, physical, and psychosocial functions.

Cognitive Disorders

A category of mental health disorders that primarily affect learning, memory, perception, and problem solving, including dementia and amnesia.