-Refer to the diagram above.Assume that the market is initially unregulated.The outcome which maximizes total economic surplus is represented by the distance ______ for price and the distance ______ for quantity.

Question

Quizplus · Accepted Answer

The outcome that maximizes total economic surplus is represented by the distance 0B for price and the distance 0Q1 for quantity. This is because the point where the supply and demand curves intersect represents the equilibrium point, where the quantity supplied equals the quantity demanded and the price is such that both buyers and sellers are willing to participate in the market.

-Refer to the Diagram Above