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

question 165

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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