Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss

question 65

Multiple Choice

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then:

• A)consumer surplus increases.
• B)producer surplus increases.
• C)deadweight loss is eliminated.
• D)all of these are true.

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Definitions:

Goal setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Negotiations fail

Occurrences when discussions or talks break down without reaching an agreement, due to various reasons such as misunderstandings, lack of compromise, or conflicting interests.

Clear objectives

Objectives that are plainly defined, unambiguous, and easy to understand, facilitating more focused and effective action.

Issues

Issues in negotiations are the points of discussion, dispute, or interest that need to be resolved or agreed upon by the parties involved in the negotiation process.