Why is consuming a quantity above equilibrium wasteful?
A) because there are willing buyers of the good who do not purchase it
B) because resources are used without making society better off
C) because it creates a shortage, which generates waste
D) because it creates a surplus, which generates waste

Question

Quizplus · Accepted Answer

Consuming a quantity above equilibrium is wasteful because it leads to the overuse of resources without making society better off. In other words, there is no demand for these excess goods, so they are not contributing to economic growth or improving society in any way. This wasted production can be seen as a loss to the economy.

Why Is Consuming a Quantity Above Equilibrium Wasteful