The Quantity of a Good Bought and Sold in a Market

question 110

Multiple Choice

The quantity of a good bought and sold in a market will be below the equilibrium quantity if:

• A)the market price is above the equilibrium price
• B)the market price is either above or below the equilibrium price
• C)the market price is below the equilibrium price
• D)demand or supply is increasing.

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Definitions:

Total Surplus

The sum of consumer and producer surplus; represents the total net benefit to society from the production and consumption of a good or service.

Deadweight Loss

Economic efficiency is lost when the balance for a good or service is either not met or unattainable.

Tariff

A tax imposed on imported goods and services to regulate trade, increase government revenue, or protect domestic industries.

Consumer Surplus

The variance between the sum consumers are inclined and can afford to pay for a good or service and the sum they genuinely pay.