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Title: Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price ... Post by: britt138 on Sep 26, 2022 Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price and quantity combination of $100 and 600 units of the good. But suppose that producers actually produce and sell 610 units. What can we correctly say about market efficiency in this case?
▸ The production and consumption of the additional 10 units of the good increases total economic surplus and increases market efficiency. ▸ The value placed on the final 10 units of the good by consumers exceeds the additional costs associated with their production - this market is not efficient. ▸ The value placed on the final 10 units of the good by consumers is less than the additional costs associated with their production - this market is not efficient. ▸ This market is not efficient because quantity demanded for the good exceeds quantity supplied. ▸ This market is efficient because economic surplus is maximized as production and consumption increase simultaneously. Title: Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price ... Post by: brendasants on Sep 26, 2022 Content hidden
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