Suppose That the Equilibrium Price in the Market for Widgets

question 15

Multiple Choice

Suppose that the equilibrium price in the market for widgets is $5.If a law increased the minimum legal price for widgets to $6,

• A)the resulting increase in consumer surplus would be larger than any possible loss of producer surplus.
• B)the resulting increase in consumer surplus would be smaller than any possible loss of producer surplus.
• C)any possible increase in producer surplus would be larger than the loss of consumer surplus.
• D)any possible increase in producer surplus would be smaller than the loss of consumer surplus.

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Definitions:

Chlorine

A chemical element with symbol Cl and atomic number 17, a yellow-green gas at room temperature, widely used in water purification, in disinfectants, and in the production of various chemicals.

Sodium

A chemical element with the symbol Na, known for its high reactivity and essential role in biological systems, especially in nerve impulse conduction.

Covalent

Pertaining to chemical bonds formed by the sharing of one or more pairs of electrons between atoms.

Ionic

Relating to ions; typically describes chemical bonds formed between atoms when electrons are transferred, resulting in charged particles.