Despite the fact that a single price can provide ________ for both producer and consumer,it causes ________,resulting from market inefficiency.
A) surplus; deadweight loss
B) deadweight loss; surplus
C) price discrimination; producer surplus
D) price discrimination; consumer surplus
E) competition; misallocation

Question

Quizplus · Accepted Answer

A single price can provide surplus for both producer and consumer by allowing them to gain more than they would in a perfectly competitive market. However, it can also cause deadweight loss, which is a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Despite the Fact That a Single Price Can Provide ________