Multiple Choice: 1. In equilibrium, for a market that functions efficiently, (a) Price serves as a signal of relative scarcity. (b) Goods are produced by the lowest-cost suppliers. (c) Total consumer plus producer surplus is maximized, (d) All of the above. 2. In the week before Hurricane Katrina, the price of flashlights rose because due to (a) An increase in supply. (b) An increase in demand. (c) A decrease in supply. (d) A decrease in demand. 3. If a surplus exists in a competitive market, (a) Price will increase (b) Price will decrease (c) Price will remain the change. (d) It is uncertain what will happen to price. 4. An increase in the demand curve will result in: (a) An increase in both price and quantity. (b) A decrease in price and an increase quantity. (c) An increase quantity and a decrease price. (d) A decrease both price and quantity