Author Question: When the competitive market is using its resources efficiently, the A) total amount of consumer ... (Read 172 times)

haleyc112 · **on:** Jun 29, 2018

When the competitive market is using its resources efficiently, the

A) total amount of consumer surplus is maximized.
B) total amount of producer surplus is maximized.
C) sum of the total amount of consumer surplus plus the total amount of producer surplus is maximized.
D) sum of the total amount of consumer surplus plus the total amount of producer surplus equals zero.

Question 2

Which of the following statements is TRUE?

A) An increase in the price of gasoline will decrease the demand for gasoline.
B) An increase in the price of gasoline will increase the quantity demanded of gasoline.
C) An increase in the price of gasoline will increase the supply of gasoline.
D) An increase in the price of gasoline will increase the quantity supplied of gasoline.