Assume a Market Price Gets Set Artificially High-That Is,it Gets

question 49

Multiple Choice

Assume a market price gets set artificially high-that is,it gets set above the equilibrium price.This change means:

• A)Every consumer loses surplus,and it all gets transferred to producers.
• B)Some consumers drop out of the market,and those left lose some surplus.
• C)Every producer gains surplus,due to the higher price now being charged.
• D)None of these is true.

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Definitions:

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Truth-In-Lending Act

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Finance Charge

The actual cost of a loan in dollars and cents.