Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $22, which of the following statements is true?
I. Some producers will gain surplus.
II. Some surplus will be transferred from producers to consumers.
III. Total surplus will fall.
A)III only
B)II and III only
C)I and II only
D)I, II, and III

Question

Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $22, which of the following statements is true?
I. Some producers will gain surplus.
II. Some surplus will be transferred from producers to consumers.
III. Total surplus will fall.
A)III only 
B)II and III only 
C)I and II only 
D)I, II, and III

Quizplus · Accepted Answer

The Answer of  Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $22, which of the following statements is true?
I. Some producers will gain surplus.
II. Some surplus will be transferred from producers to consumers.
III. Total surplus will fall.
A)III only 
B)II and III only 
C)I and II only 
D)I, II, and III

Assume the Market Depicted in the Graph Is in Equilibrium