14. Evaluating market efficiencyIf the allocation of resources in the market for a good is efficient, then it must be the case thatO producer surplus equals consumer surplus.the market is in equilibrium.on the last unit of the good that was bought and sold, the value to the buyer exceeds the cost to the seller.all of the above are correct. PRICEP.DemandP.Da a,QUANTITYRefer to Figure 7-1. Area C represents theCa. decrease in consumer surplus which results from a downward-sloping demand curve.Ob. decrease in consumer surplus to each consumer in the market when the price increases from Pi to P 2.Oc. consumer surplus to new consumers who enter the market when the price falls from P 2 to P 1.Od. increase in producer surplus when quantity sold increases from Q 2 to Q 1.

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14. Evaluating market efficiency If the allocation of resources in the market for a good is efficient, then it must be the case that O producer surplus equals consumer surplus. the market is in equilibrium. on the last unit of the good that was bought and sold, the value to the buyer exceeds the cost to the seller. all of the above are correct.

14. Evaluating market efficiency If the allocation of resources in the market for a good is efficient, then it must be the case that O producer surplus equals consumer surplus. the market is in equilibrium. on the last unit of the good that was bought and sold, the value to the buyer exceeds the cost to the seller. all of the above are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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