Assume the Market Was in Equilibrium in the Graph Shown

question 87

Multiple Choice

Assume the market was in equilibrium in the graph shown. If the market price gets set to $7, which of the following is true?

• A) Some producers gain surplus, but total surplus falls.
• B) Some producers lose surplus, but total surplus rises.
• C) Some consumers gain surplus, but total surplus falls.
• D) Some consumers lose surplus, but total surplus rises.

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