Suppose a New Law Makes Illegal the Sale of a Good

question 11

Multiple Choice

Suppose a new law makes illegal the sale of a good that had been legal. This will

• A)increase consumer surplus.
• B)increase producer surplus.
• C)decrease producer surplus.
• D)eliminate deadweight loss.

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Definitions:

Opportunity Cost

In decision-making, the loss incurred by not opting for the immediate next best alternative.

Speed-Reading Course

A speed-reading course is a program designed to teach techniques that increase the speed at which an individual reads without significantly compromising comprehension or retention.

Leisure Time

The time available for ease and relaxation outside of compulsory activities such as work and essential household tasks.

Using Resources

The process of employing available assets and materials to achieve desired goals and objectives.