When a Competitive Equilibrium Is Achieved in a Market

question 73

Multiple Choice

When a competitive equilibrium is achieved in a market,

• A)all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
• B)the total net benefit to society is maximized.
• C)the total benefits to consumers are equal to the total benefits to producers.
• D)economic surplus equals the deadweight loss.

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Definitions:

Logical Extension

A reasoning process in which conclusions are logically deduced from premises, expanding upon original ideas with rational coherence.

New Concept

An idea or thought that is original and not previously perceived.

Equilibration

A cognitive process proposed by Piaget, describing the balance between assimilation and accommodation to maintain or restore cognitive stability.

Mentally Charting

The cognitive process of mapping out or organizing thoughts, plans, or data in a structured manner.