Assume a Market That Has an Equilibrium Price of $4

question 51

Multiple Choice

Assume a market that has an equilibrium price of $4.If the market price is set at $8,which of the following is true?

• A) Some surplus is transferred from consumers to producers, but total surplus falls.
• B) All surplus is transferred from consumers to producers, and total surplus stays the same.
• C) Some surplus is transferred from producers to consumers, but total surplus falls.
• D) Some surplus is transferred from consumers to producers, causing total surplus to increase.

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Definitions:

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms, rules, or expectations of a group or society.

Group Members

Individuals who are part of a group, contributing to its dynamics, roles, and outcomes through interaction.

Group Norms

The unwritten and often unspoken set of informal rules that govern individual behaviors in a group, which members are expected to follow.

Conformity

The adjustment of one's behavior or beliefs to match those of others, typically as a response to real or imagined group pressure.