Question

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?

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