If the government intervened in the market by lowering the price of a good below the equilibrium price, which of the following would NOT occur?
A) Some consumers would receive an increase in consumer surplus.
B) Producers would likely lose some producer surplus.
C) The outcome would be efficient.
D) Total surplus would be lower.

Question

Quizplus · Accepted Answer

When the government sets a price below the equilibrium, it creates a price ceiling, leading to inefficiencies such as shortages, thus the outcome would not be efficient.

If the Government Intervened in the Market by Lowering the Price