Figure 15-7
-Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?
A)Q = 30 and P = 30
B)Q = 30 and P = 60
C)Q = 45 and P = 45
D)Q = 60 and P = 30

Question

Figure 15-7 
-Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?
A)Q = 30 and P = 30 
B)Q = 30 and P = 60 
C)Q = 45 and P = 45 
D)Q = 60 and P = 30

Quizplus · Accepted Answer

A benevolent social planner aims to maximize total surplus, which is achieved where the supply and demand curves intersect, indicating the market equilibrium. This equilibrium ensures the optimal allocation of resources, where the quantity supplied equals the quantity demanded. Without seeing Figure 15-7, the choice that typically represents a market equilibrium (where price equals quantity) suggests a balanced outcome that could maximize total surplus, assuming linear and typical demand and supply curves.

Figure 15-7 -Refer to Figure 15-7. to Maximize Total Surplus, a Benevolent