If the market for oranges is in equilibrium then at the equilibrium price:
A)the total surplus is minimized.
B)there is some deadweight loss.
C)a few mutually beneficial trades are missed.
D)consumer and producer surplus are maximized.

Question

Quizplus · Accepted Answer

At equilibrium price, the quantity demanded equals the quantity supplied, which maximizes both consumer and producer surplus. There is no deadweight loss or missed mutually beneficial trades because the market is in equilibrium. Option A is incorrect because the total surplus is actually maximized at the equilibrium price.

If the Market for Oranges Is in Equilibrium Then at the Equilibrium