(Figure: Quantity Controls) Use Figure: Quantity Controls. If the government decides to restrict the quantity sold to 100, which statement is FALSE?
A) Total surplus will fall by areas C and E.
B) The market is not at the free-market equilibrium.
C) Consumer surplus is maximized.
D) Some mutually beneficial transactions have been eliminated.

Question

(Figure: Quantity Controls) Use Figure: Quantity Controls. If the government decides to restrict the quantity sold to 100, which statement is FALSE? 
A) Total surplus will fall by areas C and E. 
B) The market is not at the free-market equilibrium. 
C) Consumer surplus is maximized. 
D) Some mutually beneficial transactions have been eliminated.

Quizplus · Accepted Answer

The Answer of (Figure: Quantity Controls) Use Figure: Quantity Controls. If the government decides to restrict the quantity sold to 100, which statement is FALSE? 
A) Total surplus will fall by areas C and E. 
B) The market is not at the free-market equilibrium. 
C) Consumer surplus is maximized. 
D) Some mutually beneficial transactions have been eliminated.