Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

question 115

Multiple Choice

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

As shown in Exhibit 3A-2, if the market price falls from P₁ to P₂, then:

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

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Definitions:

Crosstab Query Wizard

A tool in database applications that assists users in creating queries that aggregate and summarize data, displaying it in a cross-tabulated format.

Row Headings

Descriptive labels or identifiers located at the leftmost part of a table or spreadsheet to indicate the content of rows.

Column Headings

The titles located at the top of columns in tables or spreadsheets that describe the content of the columns.

Crosstab Query Wizard

A tool in database software that helps users create queries that transform rows into columns, summarizing data.