Assume a Market Has an Equilibrium Price of $4

question 69

Multiple Choice

Assume a market has an equilibrium price of $4. If the market price is set at $8, which of the following statements is true?

• A) Some surplus is transferred from consumers to producers, but total surplus falls.
• B) All surplus is transferred from consumers to producers, and total surplus stays the same.
• C) Some surplus is transferred from producers to consumers, but total surplus falls.
• D) Some surplus is transferred from consumers to producers, causing total surplus to increase.

---

Definitions:

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States.

T-test

A statistical test used to determine if there is a significant difference between the means of two groups.