Question

Compare a market operating at a quantity lower than equilibrium with the same market operating at the equilibrium quantity. Which of the following statements are true?a.) the economic surplus is greater at the equilibriumquantity

b) teh producer surplus is greater at the equilibrium quantity
c.) its unclear if the consumer surplus is greater or less at the equilibrium quantity

Answer 1

The correct answer is C

Step-by-step explanation:

Market operating or managing at the level of the below equilibrium, it means that the market having the prices which is very low and at that the quantity is sold in huge amount.

When the marketing which is operating at the level below the equilibrium, then there will be transfer of producer surplus to the consumers, which made it unclear that if the surplus of the consumer is more or greater or less at the market which is operating or doing business at the level which is below the equilibrium point.