If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good.

Question

Quizplus · Accepted Answer

In a market equilibrium, resources are allocated efficiently, meaning that it is not possible to increase economic welfare by altering the quantity of the good without causing a loss elsewhere, according to the Pareto efficiency principle.

If a Market Is in Equilibrium, Then It Is Impossible