Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then:
A)total surplus increases.
B)deadweight loss increases.
C)overproduction increases.
D)underproduction decreases.

Question

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss  As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then:
A)total surplus increases. 
B)deadweight loss increases. 
C)overproduction increases. 
D)underproduction decreases.

Quizplus · Accepted Answer

The Answer of Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss  As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then:
A)total surplus increases. 
B)deadweight loss increases. 
C)overproduction increases. 
D)underproduction decreases.