If the market for grapes is in equilibrium without any outside intervention to change the equilibrium price:
A) total surplus is minimized.
B) there is some deadweight loss.
C) a few mutually beneficial trades are missed.
D) consumer surplus and producer surplus are maximized.

Question

Quizplus · Accepted Answer

If the market for grapes is in equilibrium, it means that the price is set where the quantity demanded equals the quantity supplied. At this point, both producers and consumers are able to maximize their individual surplus, leading to the maximization of total surplus. Therefore, D is the correct answer. A is incorrect as there is no deadweight loss in equilibrium. C is partially correct, but the number of missed mutually beneficial trades is minimal in an equilibrium situation.

If the Market for Grapes Is in Equilibrium Without Any