When a Competitive Equilibrium Is Achieved in a Market

question 129

Multiple Choice

When a competitive equilibrium is achieved in a market,

• A) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
• B) the total net benefit to society is maximised.
• C) the total benefits to consumers are equal to the total benefits to producers.
• D) economic surplus equals the deadweight loss.

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Definitions:

Net Increase

The amount by which a value grows over a period, after accounting for decreases.

Vertical Analysis

Comparing items in a financial report by expressing each item as a percentage of a certain base total.

Financial Report

A Financial Report is a comprehensive statement detailing financial performance, position, and cash flows of a business over a specific period, facilitating decision-making.

Percent Of Increase

A financial metric that calculates the percentage change in a fiscal variable or amount over a specific period of time, indicating growth.