Use the following to answer question:
-(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held above equilibrium,consumer surplus will be _____ if the market were in equilibrium and total surplus will be _____ if the market were in equilibrium.
A)greater than;less than
B)less than;the same as
C)greater than;the same as
D)less than;less than

Question

Use the following to answer question: 
-(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held above equilibrium,consumer surplus will be _____ if the market were in equilibrium and total surplus will be _____ if the market were in equilibrium.
A)greater than;less than 
B)less than;the same as 
C)greater than;the same as 
D)less than;less than

Quizplus · Accepted Answer

If the price is held above equilibrium, there will be a surplus of products as producers will supply more than demanded by consumers. This results in a decrease in consumer surplus as they are willing to pay less for a product that is easily available. Also, total surplus will decrease as the value of the surplus product will be less compared to the cost of producing and selling it. Therefore, consumer surplus and total surplus will both be less than what they would be at equilibrium.

Use the Following to Answer Question