Figure 10-4

-Refer to Figure 10-4.If this market currently produces Q₃,total economic well-being would be increased if
A)production decreased to Q₂.
B)production increased to Q₄.
C)this product were no longer produced.
D)output stayed at Q₃.

Question

Figure 10-4
 
-Refer to Figure 10-4.If this market currently produces Q₃,total economic well-being would be increased if
A)production decreased to Q₂. 
B)production increased to Q₄. 
C)this product were no longer produced. 
D)output stayed at Q₃.

Quizplus · Accepted Answer

Producing at Q₂ would increase total economic well-being because it is likely closer to the equilibrium quantity where supply equals demand, minimizing deadweight loss.

Figure 10-4 -Refer to Figure 10-4.If This Market Currently Produces Q₃,total Economic