Question

any price other than the equilibrium price will always result in less total surplus in the...

any price other than the equilibrium price will always result in less total surplus in the economy, or, equivalently, some deadweight loss. True or false?

Homework Answers

Answer #1

Solution -

any price other than the equilibrium price will always result in less total surplus in the economy, or, equivalently, some deadweight loss.

Given Statement is True

Reason - When the supply and demand curves intersect, the marketis in equilibrium. This is where the quantity demanded andquantity supplied are equal. The corresponding price is theequilibrium price or market-clearing price, the quantity is the equilibrium quantity. so other than price creat  equilibrium price will always result in less total surplus in the economy

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