Suppose That the Price of a Good Is $6 and Equilibrium

question 169

Multiple Choice

Suppose that the price of a good is $6 and equilibrium price is $3. Compared to market equilibrium:

• A) consumer surplus is decreased and deadweight loss is increased.
• B) consumer surplus is increased and deadweight loss is decreased.
• C) producer surplus is decreased and deadweight loss is increased.
• D) producer surplus is decreased and deadweight loss is decreased.

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Definitions:

Quantitative Variable

A variable with quantitative data.

Goals Scored

The number of times a goal is successfully made by a team or player in sports, notably in soccer or football.

Soccer Game

A team sport played between two teams of eleven players with a spherical ball, known globally and governed by a set of rules known as the Laws of the Game.

Categorical

Refers to variables that represent types of data which may be divided into groups.