Consider the market for refined oil.In the market equilibrium,

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In market equilibrium, the internal supply (the quantity producers are willing to supply) equals the internal demand (the quantity consumers are willing to buy). This is the point where the market clears and there is no excess supply or demand, and therefore no deadweight loss. Choices B and C are not correct because the social supply is not necessarily the same as the internal supply or demand, as it includes external costs and benefits. Choice D is not necessarily true in market equilibrium, as it depends on the level of demand relative to the supply.

Consider the Market for Refined Oil