A socially optimal price: A) maximizes consumer surplus and ...

[Yi-Chen]

A socially optimal price:
 
  A) maximizes consumer surplus and minimizes producer surplus.
  B) maximizes producer surplus and minimizes consumer surplus.
  C) maximizes total surplus.
  D) maximizes deadweight loss.

Question 2

Which of the following statements differentiates between a shortage and a surplus?
 
  A) A shortage occurs when price is held at the equilibrium price, but a surplus occurs when price is held above the equilibrium price.
  B) A shortage occurs when price is held below the equilibrium price, but a surplus occurs when price is held at the equilibrium price.
  C) A shortage occurs when quantity supplied exceeds quantity demanded, whereas a surplus occurs when quantity demanded exceeds quantity supplied.
  D) A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.

[k.lashomb]

Answer to Question 1

C

Answer to Question 2

D

[Yi-Chen]

Great answer, keep it coming

[scikid]

Thanks for the timely response, appreciate it