If the Market for Grapefruit Is in Equilibrium Without Any

question 38

Multiple Choice

If the market for grapefruit is in equilibrium without any outside intervention to change the equilibrium price:

• A)total surplus is minimized.
• B)there is some deadweight loss.
• C)a few mutually beneficial trades are missed.
• D)consumer and producer surplus are maximized.

---

Definitions:

Correspondent Inference

The tendency to draw conclusions about a person's dispositional characteristics from their behavior.

Causal Relationship

A connection between two variables where a change in one directly affects the change in the other.

Actor-Observer Effect

A psychological phenomenon in which people tend to attribute their own actions to situational factors while attributing other people's actions to their internal characteristics.

Fundamental Attribution Error

The tendency to explain someone's behavior based on internal factors, such as personality or disposition, while underestimating external factors.