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

question 46

Multiple Choice

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:

• A)consumer surplus increases.
• B)producer surplus increases.
• C)deadweight loss is eliminated.
• D)all of the above are true.
• E)none of the above are true.

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Definitions:

Government

The organization or system through which a community or society is governed, often involving institutions and political mechanisms.

Less Developed

A term referring to countries with lower levels of industrialization, lower standard of living, and lower Human Development Index (HDI) scores.

Agricultural Output

The total amount of agricultural products produced within a specific period.

Industrial Output

The total value of the goods and services produced by a country's industrial sector.