The following graph represents the market for a certain good.

-Refer to the graph above.Which of the following is true?
A) Social surplus could be increased if the producer could manage to sell more than five units at the price of 5.
B) Selling a sixth unit at a price of 5 increases social surplus by 1.
C) As long as the price of the good is 5, social surplus is maximized independently of the quantity sold.
D) As long as the quantity sold is 5, social surplus is maximized independently of the price of the good.

Question

The following graph represents the market for a certain good.
 
-Refer to the graph above.Which of the following is true?
A) Social surplus could be increased if the producer could manage to sell more than five units at the price of 5. 
B) Selling a sixth unit at a price of 5 increases social surplus by 1. 
C) As long as the price of the good is 5, social surplus is maximized independently of the quantity sold. 
D) As long as the quantity sold is 5, social surplus is maximized independently of the price of the good.

Quizplus · Accepted Answer

The Answer of The following graph represents the market for a certain good.
 
-Refer to the graph above.Which of the following is true?
A) Social surplus could be increased if the producer could manage to sell more than five units at the price of 5. 
B) Selling a sixth unit at a price of 5 increases social surplus by 1. 
C) As long as the price of the good is 5, social surplus is maximized independently of the quantity sold. 
D) As long as the quantity sold is 5, social surplus is maximized independently of the price of the good.

The Following Graph Represents the Market for a Certain Good