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(Figure: Market in Equilibrium) the Market in the Figure Is

Question 175

Multiple Choice

(Figure: Market in Equilibrium) The market in the figure is at equilibrium. If price rises to $5, what happens to consumer surplus, producer surplus, and total efficiency? (Figure: Market in Equilibrium)  The market in the figure is at equilibrium. If price rises to $5, what happens to consumer surplus, producer surplus, and total efficiency?   A)  Consumer surplus increases, producer surplus decreases, total efficiency may increase or decrease. B)  Consumer surplus decreases, producer surplus may increase or decrease, total efficiency decreases. C)  Consumer surplus decreases, producer surplus increases; total efficiency rises. D)  Consumer surplus increases, producer surplus decreases, total efficiency decreases.


A) Consumer surplus increases, producer surplus decreases, total efficiency may increase or decrease.
B) Consumer surplus decreases, producer surplus may increase or decrease, total efficiency decreases.
C) Consumer surplus decreases, producer surplus increases; total efficiency rises.
D) Consumer surplus increases, producer surplus decreases, total efficiency decreases.

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