In a Perfectly Competitive Market, If Supply and Demand Fully

question 58

Multiple Choice

In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:

• A)price controls keep prices low enough that most consumers can purchase the item.
• B)consumer surplus and producer surplus are equal.
• C)consumer surplus is greater than producer surplus.
• D)the market is in equilibrium.

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Definitions:

Daily Caloric Intake

The total number of calories a person consumes in one day, important for managing weight and nutritional health.

Carbohydrates

Organic compounds, including sugars, starches, and fiber, that are major sources of energy for the body.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life.

Essential

Absolutely necessary; extremely important in a particular situation or for a specific process.