The diagram below shows supply, demand, and quantity exchanged of Monday matinee movie tickets. Assume it is a perfectly competitive market. FIGURE 12- 4
-Refer to Figure 12- 4. Suppose a disequilibrium price of $7.50 per movie ticket is imposed on this market. The total economic surplus is now _ , which is than the total economic surplus generated at the allocatively efficient level of output.
A) $187.50; $62.50 less
B) $125; $250 less
C) $62.50; $125 less
D) $125; $125 less
E) $187.50; $187.50 less

Question

The diagram below shows supply, demand, and quantity exchanged of Monday matinee movie tickets. Assume it is a perfectly competitive market.  FIGURE 12- 4
-Refer to Figure 12- 4. Suppose a disequilibrium price of $7.50 per movie ticket is imposed on this market. The total economic surplus is now _ , which is than the total economic surplus generated at the allocatively efficient level of output.
A) $187.50; $62.50 less 
B) $125; $250 less 
C) $62.50; $125 less 
D) $125; $125 less 
E) $187.50; $187.50 less

Quizplus · Accepted Answer

The total economic surplus is now $187.50, which is $62.50 less than the total economic surplus generated at the allocatively efficient level of output.

The Diagram Below Shows Supply, Demand, and Quantity Exchanged of Monday