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In the Market for Leather Wallets, If Surplus Is Transferred

Question 209

Multiple Choice

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


A) the current price of leather wallets is too high.
B) the current quantity of leather wallets is too high.
C) deadweight loss could be reduced if the current price were higher.
D) total surplus increases because producers earn additional money from the consumers who are willing to pay the higher price.

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