Assume the Market Was in Equilibrium in the Graph Shown

question 69

Multiple Choice

Assume the market was in equilibrium in the graph shown.If the market price were set to $6,which of the following is true?

• A) For those still interacting in the market, some surplus is transferred from buyer to seller.
• B) For those still interacting in the market, some surplus is transferred from seller to buyer.
• C) Producers gain the surplus of those buyers who dropped out of the market.
• D) Consumers gain the surplus of those sellers who dropped out of the market.

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Definitions:

LLC

Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Organization

An entity, such as a company or society, formed by a group of people for a particular purpose.

Operating Agreement

A document detailing the management and operational protocols for a limited liability company (LLC) between its members.

Articles of Organization

Legal documents filed with a state government to legally document the creation of a limited liability company (LLC).