-The figure above shows the market for pants.If the efficient quantity is produced,

Question

Quizplus · Accepted Answer

When the efficient quantity is produced in a market, it means that the quantity supplied matches the quantity demanded at the equilibrium price. This scenario maximizes the total welfare in the market, which is the sum of consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between the market price and the minimum price at which producers are willing to sell). Therefore, at the efficient quantity, the sum of consumer and producer surplus is maximized, leading to the most efficient allocation of resources.

-The Figure Above Shows the Market for Pants