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Prices below the free market equilibrium price are inefficient because: A ) total surplus is higher than in equilibrium. B ) producer surplus is lower
Prices below the free market equilibrium price are inefficient because:
A total surplus is higher than in equilibrium.
B producer surplus is lower than in equilibrium.
C consumer surplus is higher than in equilibrium.
D total surplus is lower than in equilibrium.
Suppose the government imposes a maximum price on rental apartments and the market price of apartments doesn't change. The most likely explanation is that:
A market forces are pushing rental rates up to avoid a shortage.
B apartment ownes mure withdrifing rontat units from the market and forethe price up
the maximum price set by the government was at or above the equilibrium price
D the law is imposithte to enforce
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