Figure 7-12

-Refer to Figure 7-12.At the quantity Q₃,
A)the market is in equilibrium.
B)consumer surplus is maximized.
C)the sum of consumer surplus and producer surplus is maximized.
D)the value to buyers is less than the cost to sellers.

Question

Figure 7-12
 
-Refer to Figure 7-12.At the quantity Q₃,
A)the market is in equilibrium. 
B)consumer surplus is maximized. 
C)the sum of consumer surplus and producer surplus is maximized. 
D)the value to buyers is less than the cost to sellers.

Quizplus · Accepted Answer

At quantity Q₃, the value to buyers is less than the cost to sellers, indicating that the market is not in equilibrium and the total surplus is not maximized.

Figure 7-12 -Refer to Figure 7-12.At the Quantity Q₃