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In the Market for Medicine, If Surplus Is Transferred from Producers

Question 188

Multiple Choice

In the market for medicine, if surplus is transferred from producers to consumers, from the standpoint of efficiency


A) the current price of medicine is too high.
B) the current quantity of medicine is too low.
C) deadweight loss could be reduced if the current price were lower.
D) total surplus increased because consumers paid lower prices for the existing inventory.

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