Suppose That the Price of a Good Is $650 and Equilibrium

question 289

Multiple Choice

Suppose that the price of a good is $650 and equilibrium price is $675. 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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