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From Exhibit 3 with a price of $5, the consumer surplus is ____, the producer surplus is ___, and the deadweight loss is ___.

A) $20, $30, $10
B) $30, $20, $10
C) $20, $10, $30
D) $10, $20, $30

User Satomi
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1 Answer

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Final answer:

Without Exhibit 3, we can't accurately determine the consumer surplus, producer surplus, and deadweight loss at a price of $5. These economic terms represent key aspects of market efficiency and the impacts of price deviations from equilibrium. An accurate answer requires specific information from Exhibit 3.

Step-by-step explanation:

From the provided information in Exhibit 3, and assuming a price of $5, we have to identify the correct amounts for the consumer surplus, producer surplus, and deadweight loss. The consumer surplus represents the gap between the price that consumers are willing to pay and the market equilibrium price, while the producer surplus represents the gap between the price producers are willing to sell at and the market equilibrium price. The deadweight loss occurs when the economy produces at an inefficient quantity, leading to a loss in total surplus.

Without Exhibit 3, we can't determine the precise amounts for each category; however, the theoretical framework suggests that any intervention that causes the price to diverge from the equilibrium will result in a deadweight loss. With options provided as A) $20, $30, $10 B) $30, $20, $10 C) $20, $10, $30 D) $10, $20, $30, and given that we are looking for a scenario with a specified price different from the equilibrium, we could expect that the correct answer would be the one reflecting a deadweight loss. Yet, without the context of Exhibit 3, we cannot provide an accurate response.

User Draganstankovic
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