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The market for carrot is at equilibrium. The consumer surplus is 50 units and the producer surplus is 100 units. Which of the following statements is correct?

Question 14 options:

1)

The market is not efficient because consumer surplus and producer surplus are not equal.

2)

The market is efficient.

3)

When the market is at equilibrium, consumer surplus must be equal to producer surplus.

4)

The market is not at equilibrium because the consumer surplus and producer surplus are not equal.

Answer 1

For option (1), the producer surplus and consumer surplus need not to be equal in order to have market to be efficient. So this option is false.

For option (3), when the Market is at Equilibrium, it's not necessary to have consumer surplus and producer surplus to be equal.

For option (4), Even if producer surplus and producers surplus aren't equal the market will ne at Equilibrium.

For option (2), The Market is efficient, Cause a Equilibrium is achieved and net surplus is maximum at this place.