Use the Following to Answer Questions

question 229

Multiple Choice

Use the following to answer questions
Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss) Consider the graph.If the price is lowered from $8 to $5,consumer surplus:

• A) increases by $20 and deadweight loss increases by $30.
• B) increases by $120 and deadweight loss increases by $70.
• C) decreases by $20 and deadweight loss increases by $30.
• D) increases by $20 and deadweight loss increases by $70.

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