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

question 97

Multiple Choice

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

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