Total surplus can be increased if:
A) new markets are created.
B) new technology is banned.
C) deadweight loss is increased.
D) All of these can increase total surplus.

Question

Quizplus · Accepted Answer

Creating new markets can lead to increased competition, which can drive down prices and increase consumer surplus. It can also create new opportunities for producers, leading to increased producer surplus. Banning new technology would likely lead to a decrease in total surplus, as it would limit opportunities for innovation and potentially increase costs for consumers. Increasing deadweight loss would also decrease total surplus, as it represents a loss of potential gains from trade. Therefore, only choice A would increase total surplus.

Total Surplus Can Be Increased If