When the Market Price Is Set Above the Equilibrium Price

question 101

Multiple Choice

When the market price is set above the equilibrium price:

• A) the market is not efficient.
• B) total surplus is not maximized.
• C) consumer surplus is decreased.
• D) All of these are true.

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Definitions:

Decline

A gradual decrease in quality, quantity, or importance.

Purposes

The reasons for which something is done or created or for which something exists.

United States

A country located in North America, consisting of 50 states, and known for its significant influence on world politics, economy, and culture.

Witness

An individual who observes an event taking place, especially one who can give a first-hand account of it, often legally.