In the Following Graph, If the Price of a Good

question 12

Multiple Choice

In the following graph, if the price of a good increases from $4 to $6, the amount of deadweight loss in this market would

• A) fall to $0.
• B) increase by $2.
• C) remain unchanged.
• D) increase to $30.

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Definitions:

Purchases of Services

Transactions where buyers acquire services rather than tangible goods from sellers.

Net Exports Component

The difference between a country's total exports of goods and services and its total imports, part of the gross domestic product calculation.

Consumption Component

The part of total economic output that is used by individuals and households for personal needs and wants.

Additions to Inventory

Increases in the quantity of goods held by a company during a particular period, often for future sale or production use.