Suppose That the Equilibrium Price in the Market for Widgets

question 215

Multiple Choice

Suppose that the equilibrium price in the market for widgets is $8.If a law reduced the maximum legal price for widgets to $7,what would happen to consumer surplus

• A)It would necessarily increase even if the lower price resulted in a shortage of widgets.
• B)It would necessarily decrease because the lower price would create a shortage of widgets.
• C)It might increase or decrease.
• D)It would be unaffected.

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Definitions:

Method Use

A general term that refers to the application or employment of specific techniques or strategies to achieve an intended result.

Dethroning The Persona

The psychological process of challenging and reducing the dominance of the social façade one presents to the world.

Public Face

The persona an individual presents to the outside world, often contrasted with their private or true self.

Genuine Self

The authentic aspect of an individual's personality, characterized by sincerity, integrity, and a true representation of one's inner feelings and beliefs.