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:

Remained

Stayed in the same place or condition; continued to be.

Doubled

Increased by 100 percent or made twice as large in size, amount, or number.

Quadrupled

To increase fourfold, or to become four times as large in quantity or value.

Imports

Goods and services brought into one country from another for sale, often reflecting a country's demand for products that are not produced within its borders.