Question : 111. According to the graph shown, if the market goes from : 1379031

111. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. producer surplus rises by area B, but falls by area E.

B. producer surplus rises by area B, but falls by area D + E.

C. producer surplus rises by area B + C, but falls by area D + E.

D. producer surplus rises by area B + C, but falls by area E.

112. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. area (B + C) gets transferred from consumer to producer.

B. area (B + C) gets transferred from producer to consumer.

C. area B gets transferred from consumer to producer.

D. area B gets transferred from producer to consumer.

113. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. $12 gets transferred from consumer to producer in surplus.

B. $12 gets transferred from producer to consumer in surplus.

C. all consumer surplus lost is gained by producers.

D. all producer surplus lost is gained by consumers.

114. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. $12 gets transferred from consumer surplus to producer surplus.

B. area C is lost surplus due to fewer transactions taking place.

C. area E is lost surplus due to fewer transactions taking place.

D. All of these are true.

115. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. area (C + E) is deadweight loss.

B. area B is transferred surplus from consumers to producers.

C. $12 of surplus gets transferred from consumers to producers.

D. All of these is true.

116. 

According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:

A. the market ceases to be efficient.

B. total surplus will decline.

C. deadweight loss will occur.

D. All of these are true.

117.Deadweight loss:

A. occurs in markets that are inefficient.

B. occurs when markets are not in equilibrium.

C. is lost surplus due to less market transactions.

D. All of these are true.

118.Deadweight loss:

A. creates efficiency in markets.

B. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.

C. is the loss of total surplus that results when the quantity of a good that is bought and sold is above the market equilibrium quantity.

D. always occurs in markets.

119.Deadweight loss:

A. occurs when the market price is set above the equilibrium price.

B. occurs when the market price is set below the equilibrium price.

C. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.

D. All of these are true.

120.The loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity:

A. is deadweight loss.

B. occurs in inefficient markets.

C. occurs when the market price is set above the equilibrium price.

D. All of these are true.