If the Current Allocation of Resources in the Market for Wallpaper

question 56

Multiple Choice

If the current allocation of resources in the market for wallpaper is efficient,then it must be the case that

• A)producer surplus equals consumer surplus in the market for wallpaper.
• B)the market for wallpaper is in equilibrium.
• C)on the last unit of wallpaper that was produced and sold,the value to buyers exceeded the cost to sellers.
• D)All of the above are correct.

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.

False Eye Lashes

Artificial lashes applied to enhance the length, curl, fullness, and thickness of natural eyelashes.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer derives from consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.