Assume the market depicted in the graph is in equilibrium. If the market price is set to $6, which of the following statements is true?
A) For those still interacting in the market, some surplus will be transferred from buyer to seller.
B) For those still interacting in the market, some surplus will be transferred from seller to buyer.
C) Producers will gain the surplus of those buyers who drop out of the market.
D) Consumers will gain the surplus of those sellers who drop out of the market.

Question

Assume the market depicted in the graph is in equilibrium. If the market price is set to $6, which of the following statements is true?
A) For those still interacting in the market, some surplus will be transferred from buyer to seller. 
B) For those still interacting in the market, some surplus will be transferred from seller to buyer. 
C) Producers will gain the surplus of those buyers who drop out of the market. 
D) Consumers will gain the surplus of those sellers who drop out of the market.

Quizplus · Accepted Answer

When the market price is set to $6, the quantity demanded is greater than the quantity supplied, leading to a shortage in the market. This means that buyers are willing to pay more than $6 to obtain the goods, while sellers are only receiving $6 for their product. Therefore, some surplus will be transferred from seller to buyer to maintain the market equilibrium.

Assume the Market Depicted in the Graph Is in Equilibrium