If price is lowered by law from the market equilibrium value of $5 to a lower value of $4:
A. producer surplus will decrease and there will be some total surplus lost.
B. consumer surplus will decrease and there will be some total surplus lost.
C. there will be lost surplus, as both producer surplus and consumer surplus decrease.
D. both producer surplus and consumer surplus will increase.
Answer: A
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In Egypt, in 1970, the Aswan Dam was completed. By preventing the annual flood of the Nile (thereby providing millions of acres of arable land) and by providing electricity, the dam was expected to raise the living standard of the Egyptian people-and it has. However, it has also led to a rise in the water table which causes Egypt's limestone structures, including the pyramids, to absorb more salt
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