The Figure Below Shows the Supply and Demand Curves for Jeans

question 71

Multiple Choice

The figure below shows the supply and demand curves for jeans in Smallville. The equilibrium price will NOT lead to the largest possible total economic surplus if:

• A)jeans are purchased by consumers with reservation prices greater than $40.
• B)the market for jeans is perfectly competitive.
• C)the production of jeans generates air pollution.
• D)there are diminishing returns in the production of jeans.

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Definitions:

Ventilator

A machine that provides mechanical ventilation by moving breathable air into and out of the lungs, to deliver breaths to a patient who is physically unable to breathe.

DNAR (AND) Prescription

A medical order (Do Not Attempt Resuscitation / Allow Natural Death) indicating that no resuscitative efforts should be made in the event of a patient's cardiac or respiratory arrest.

Ethically Sound Compromise

A solution to a moral or ethical dilemma that is acceptable to all parties involved and adheres to principles of ethical conduct.

Settlement

The resolution of a dispute or lawsuit, often involving an agreement between the parties involved, sometimes including a financial payment.