Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:
A)consumer surplus increases.
B)producer surplus increases.
C)deadweight loss is eliminated.
D)all of the above are true.
E)none of the above are true.

Question

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss  As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:
A)consumer surplus increases. 
B)producer surplus increases. 
C)deadweight loss is eliminated. 
D)all of the above are true. 
E)none of the above are true.

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 $2.00 to $1.00, then:
A)consumer surplus increases. 
B)producer surplus increases. 
C)deadweight loss is eliminated. 
D)all of the above are true. 
E)none of the above are true.