Equilibrium price .

Question

Assume a market price is set artificially high. In other words, the price is set above the equilibrium price. How will this affect the market? 1. Every consumer loses surplus, and it all gets transferred to producers 2. Every producer gains surplus, due to the higher price now being charged. 3. Some consumers drop out of the market, and those left some surplus 4. None of these are correct

Answer 1

Question

Chapter 8, Problem 5MC

To determine

Equilibrium price.

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