Assume the Market Was in Equilibrium in the Graph Shown

question 1

Multiple Choice

Assume the market was in equilibrium in the graph shown. If the market price were set to $12, which of the following is true?

• A) For those still interacting in the market, some surplus is transferred from buyer to seller.
• B) For those still interacting in the market, some surplus is transferred from seller to buyer.
• C) Producers gain the surplus of those buyers who dropped out of the market.
• D) Consumers gain the surplus of those sellers who dropped out of the market.

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Definitions:

Defect Rate

The percentage or rate at which a process or product fails to meet quality standards or produces errors, used as a measure of quality control.

Control Chart

A tool used in statistical process control to monitor, control, and improve process performance over time by identifying variations.