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Figure 7-11

Question 187

Multiple Choice

Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price.
Figure 7-11. On the graph below, Q represents the quantity of the good and P represents the good's price. -Refer to Figure 7-11.The equilibrium allocation of resources is A) efficient because total surplus is maximized at the equilibrium. B) efficient because consumer surplus is maximized at the equilibrium. C) inefficient because consumer surplus is larger than producer surplus at the equilibrium. D) inefficient because total surplus is maximized when 10 units of output are produced and sold.
-Refer to Figure 7-11.The equilibrium allocation of resources is


A) efficient because total surplus is maximized at the equilibrium.
B) efficient because consumer surplus is maximized at the equilibrium.
C) inefficient because consumer surplus is larger than producer surplus at the equilibrium.
D) inefficient because total surplus is maximized when 10 units of output are produced and sold.

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