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Suppose that the equilibrium price in the market for widgets is $75. If a law reduced the maximum legal price for widgets to S60, Select one: O A. any possible increase in consumer surplus would be larger than the loss of producer surplus. o B. any possible increase in consumer surplus would be smaller than the loss of producer surplus. o C. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. • D. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus.

Suppose that the equilibrium price in the market for widgets is $75. If a law reduced the maximum legal price for widgets to S60, Select one: O A. any possible increase in consumer surplus would be larger than the loss of producer surplus. o B. any possible increase in consumer surplus would be smaller than the loss of producer surplus. o C. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. • D. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Suppose that the equilibrium price in the market for widgets is $75. If a law reduced the maximum legal price for widgets to S60, Select one: O A. any possible increase in consumer surplus would be larger than the loss of producer surplus. o B. any possible increase in consumer surplus would be smaller than the loss of producer surplus. o C. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. • D. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus.
Transcribed Image Text:Suppose that the equilibrium price in the market for widgets is $75. If a law reduced the maximum legal price for widgets to S60, Select one: O A. any possible increase in consumer surplus would be larger than the loss of producer surplus. o B. any possible increase in consumer surplus would be smaller than the loss of producer surplus. o C. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. • D. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus.
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