Assume a Market Has an Equilibrium Price of $8

question 86

Multiple Choice

Assume a market has an equilibrium price of $8. If the market price is set at $7: I. Total surplus rises if the change in quantity is large enough.
II) Consumer surplus rises for some because of the decreased price.
III) Consumer surplus decreases for some because fewer transactions are taking place.

• A) I and II only
• B) II and III only
• C) III only
• D) I and III only

---

Definitions:

Alcohol

A psychoactive substance and depressant that is found in beverages such as beer, wine, and spirits, affecting the central nervous system.

Psychological Dependence

a form of dependence characterized by a perceived need to use a substance or engage in a behavior to achieve emotional or psychological well-being.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, highly addictive and illegal.

Narcolepsy

A lasting sleep disturbance featuring overwhelming sleepiness throughout the day and abrupt instances of sleeping.