Suppose That the Equilibrium Price in the Market for Widgets

question 126

Multiple Choice

Suppose that the equilibrium price in the market for widgets is $5. If a law increased the minimum legal price for widgets to $6, producer surplus

• A)would necessarily increase even if the higher price resulted in a surplus of widgets.
• B)would necessarily decrease because the higher price would create a surplus of widgets.
• C)might increase or decrease.
• D)would be unaffected.

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Definitions:

Committing Perjury

The criminal act of lying under oath during a legal proceeding, which undermines the justice system's ability to ascertain the truth.

Exculpatory Evidence

Evidence that might exonerate a defendant in a criminal proceeding, showing they are not guilty of the crime.

Constitutional Right

A right that is protected and guaranteed by a country's constitution, often relating to the freedoms and liberties of its citizens.

Fair Trial

A legal process in which an individual's rights are respected, including the right to a public hearing, a neutral judge, and a fair judgment.