Assume the Market Was in Equilibrium in the Graph Shown

question 63

Multiple Choice

Assume the market was in equilibrium in the graph shown.If the market price gets set to $14,which of the following is true?

• A) Some consumers gain surplus, but total surplus falls.
• B) Some producers gain surplus, but total surplus falls.
• C) Some producers lose surplus, but total surplus rises.
• D) Some consumers lose surplus, but total surplus rises.

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Definitions:

Geometric Sequence

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ratio.

Common Ratio

In a geometric sequence, the constant factor between consecutive terms, used to calculate subsequent terms.

Geometric Sequence

A sequence of numbers where each term is found by multiplying the previous term by a constant called the common ratio.

Common Ratio

In a geometric sequence, the constant factor by which each term is multiplied to get the next term in the sequence.