In General, If a Benevolent Social Planner Wanted to Maximise

question 51

Multiple Choice

In general, if a benevolent social planner wanted to maximise the total benefits received by buyers and sellers in a market, the planner should

• A) choose a price below the market equilibrium price.
• B) allow the market to seek equilibrium on its own.
• C) choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).
• D) choose a price above the market equilibrium price.

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Definitions:

Personal Relationship

A connection between individuals based on emotional or social bonds, often characterized by mutual respect, understanding, and communication.

Personal Selling

A direct marketing approach where individual salespeople reach out to potential customers through face-to-face meetings, calls, or personalized messages.

Trade Sales Promotion

Marketing activities and incentives aimed at intermediaries such as wholesalers and retailers to encourage the stocking and promotion of a company’s products.

Retailers

Businesses that sell goods or services to consumers for personal or household use, acting as a final link between producers and consumers.