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

question 30

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)total surplus increases.
• B)deadweight loss increases.
• C)overproduction decreases.
• D)underproduction decreases.

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Definitions:

Papillae

Rounded bumps above the tongue’s surface that contain the taste buds, the receptors for taste.

Pinnae

The visible part of the ear that protrudes from each side of the head, playing a role in collecting sound vibrations and directing them into the ear canal.

Inner Ear

A complex structure deep within the ear responsible for hearing and balance, containing the cochlea and vestibular system.

Cochlea

A spiral-shaped cavity in the inner ear that plays a key role in the sense of hearing by converting sound vibrations into nerve impulses.