Assume the market was in equilibrium in the graph shown. If the market price were set to $12, which of the following is true?





A. For those still interacting in the market, some surplus is transferred from buyer to seller.

B. For those still interacting in the market, some surplus is transferred from seller to buyer.

C. Producers gain the surplus of those buyers who dropped out of the market.

D. Consumers gain the surplus of those sellers who dropped out of the market.


A. For those still interacting in the market, some surplus is transferred from buyer to seller.

Economics

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The above figure shows the market for apples. If apple farmers convince the government to set a minimum price of $4 per pound, then

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Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?

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How much is savings when disposable income is $5 billion?

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